$SPRO - A sleep easy biotech?
Spero Therapeutics have a PDUFA date coming on June 18th. This is the second attempt at approval for the same drug, this time with a clear SPA from the FDA and the backing of GSK.
The drug, Tebipenem HBr will be the only non-IV carbapenem on the market. This is the last resort treatment for antibiotic resistant infections.
The Phase 3 was extensive and GSK know what they are doing, rejection probability is very low here.
The commercialisation will be funded and ran by GSK also, no dilution and strong sales team. Milestone payments of $100m on the first commercial sale, with payments up to $225m plus low double digit royalties.
The royalty agreement is quite punitive however, with royalties also owed out on the royalties they earn.
This isn’t a 10x. It’s a simple ride to the first milestone payments, with short time horizon and no dilution. Money could be made if GSK buy them out, which is a possibility.
Check out the full write up here: