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Spero Therapeutics Inc (SPRO)
NASDAQ:SPRO
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Spero Therapeutics
(NASDAQ:SPRO)
46Neutral
Positive Factors
Financial Performance
Spero Therapeutics has sufficient financial resources to fund its operations and capital expenditures into mid-2026, providing a stable financial outlook.
Partnership and Milestones
GlaxoSmithKline is slated to pay Spero up to $400M in potential milestone and royalty payments related to tebipenem HBr.
Trial Progress
The PIVOT-PO confirmatory pivotal trial of tebipenem HBr is expected to provide sufficient data to support FDA approval for complicated urinary tract infections.
Negative Factors
Program Suspension
The Phase 2a proof-of-concept study of SPR720 did not meet its primary endpoint, leading to the suspension of its development program.
Regulatory Challenges
Spero responded to a 'Wells Notice' from the staff of the Boston Regional Office of the U.S. Securities and Exchange Commission regarding its preliminary determination to recommend a civil enforcement action or administrative proceeding against Spero.
Restructuring
Spero Therapeutics plans a restructuring and reduction in force of approximately 39% to support other developments.
Spero Therapeutics (SPRO) vs. S&P 500 (SPY)
Market Cap
$41.79M
Dividend YieldN/A
Average Volume (3M)107.82K
Price to Earnings (P/E)10.8
Beta (1Y)1.28
Revenue Growth-71.68%
EPS Growth-397.61%
CountryUS
Employees32
SectorHealthcare
Sector Strength72
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.27
Shares Outstanding54,518,166
10 Day Avg. Volume141,438
30 Day Avg. Volume107,823
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)N/A
Price to Sales (P/S)0.42
Price to Cash Flow (P/CF)0.90
P/FCF Ratio0.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.00Price Target Upside594.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Spero Therapeutics Business Overview & Revenue Model
Company DescriptionSpero Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on identifying, developing, and commercializing treatments for multi-drug resistant (MDR) bacterial infections and rare diseases in the United States. The company's product candidates include tebipenem pivoxil hydrobromide (HBr), an oral carbapenem-class antibiotic to treat complicated urinary tract infections, including pyelonephritis for adults; SPR206, a direct acting IV-administered agent to treat MDR Gram-negative bacterial infections in the hospital; and SPR720, an oral antibiotic for the treatment of non-tuberculous mycobacterial pulmonary disease. It has license agreement with Meiji Seika Pharma Co., Ltd. to support the development of tebipenem HBr; license agreement with Everest Medicines to develop, manufacture, and commercialize SPR206 in Greater China, South Korea, and Southeast Asian countries; collaboration agreement with Bill & Melinda Gates Medical Research Institute to develop SPR720 for the treatment of lung infections caused by Mycobacterium tuberculosis; and license agreement with Vertex Pharmaceuticals Incorporated for patents relating to SPR720, as well as SPR719, an active metabolite. The company was founded in 2013 and is headquartered in Cambridge, Massachusetts.
How the Company Makes MoneySpero Therapeutics makes money primarily through the development and commercialization of its proprietary antibiotics. Revenues are generated through partnerships, collaborations, and licensing agreements with other pharmaceutical companies and organizations, which provide funding for the development of its drug candidates. These partnerships often involve milestone payments, royalties, and shared profits from successfully developed products. Additionally, the company may receive grants and research funding from government and non-profit entities to support its research and development efforts. Key factors contributing to Spero's earnings include the successful progression of its drug candidates through clinical trials and eventual regulatory approval and commercialization.
Spero Therapeutics Financial Statement Overview
Summary
Spero Therapeutics faces significant financial challenges, particularly in profitability and cash flow management. Revenue instability and negative net income margins highlight operational inefficiencies. Although the balance sheet remains stable with manageable debt levels, the decline in equity ratio and return on equity suggests potential financial stress. The company's cash flow position indicates ongoing operational cash constraints, necessitating strategic adjustments to enhance financial performance.Income Statement
Spero Therapeutics experienced significant revenue volatility with a decline from $96.7M in 2023 to $47.9M in 2024. The gross profit margin was stable at 100% due to cost alignment with revenue. However, the net profit margin deteriorated from 23.6% to -142.9% over the same period, indicating challenges in managing costs and expenses. EBIT and EBITDA margins also turned negative, reflecting operational inefficiencies.55
Neutral
Balance Sheet
The company's debt-to-equity ratio improved from 0.05 in 2023 to 0.09 in 2024, showcasing a manageable debt level relative to equity. However, the return on equity fell drastically from 21.3% to -148.6%, which suggests a reduction in shareholder value. The equity ratio decreased from 58.6% to 41.7%, indicating a weaker financial position with increased liabilities.60
Neutral
Cash Flow
Free cash flow remained negative but improved slightly from -$33M to -$23.4M in 2024. The operating cash flow to net income ratio was negative, reflecting cash flow challenges from operations. Despite these issues, the company managed cash reserves, maintaining a relatively stable cash position.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 95.52M | 47.98M | 96.73M | 48.58M | 18.26M | 9.33M | Gross Profit |
| 100.54M | 47.98M | 96.37M | 47.03M | 17.14M | -57.67M | EBIT |
| -7.86M | -73.36M | 21.48M | -42.20M | -87.97M | -79.11M | EBITDA |
| -972.25K | -73.36M | 25.77M | -42.26M | -87.17M | -76.93M | Net Income Common Stockholders |
| 3.51M | -68.57M | 22.81M | -48.03M | -91.30M | -77.52M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 75.39M | 52.89M | 76.33M | 109.11M | 146.40M | 126.91M | Total Assets |
| 81.06M | 110.54M | 182.39M | 124.80M | 171.07M | 153.45M | Total Debt |
| 0.00 | 4.30M | 5.54M | 6.65M | 7.33M | 7.84M | Net Debt |
| -52.55M | -48.59M | -70.79M | -102.46M | -105.25M | -77.37M | Total Liabilities |
| 6.16M | 64.42M | 75.50M | 48.87M | 82.78M | 21.41M | Stockholders Equity |
| 74.54M | 46.12M | 106.89M | 75.93M | 88.29M | 132.04M |
| Cash Flow | Free Cash Flow | ||||
| -17.54M | -23.44M | -32.99M | -7.73M | -64.31M | -86.03M | Operating Cash Flow |
| -17.54M | -23.44M | -32.99M | -7.73M | -64.35M | -85.87M | Investing Cash Flow |
| 0.00 | 0.00 | 0.00 | 33.81M | 7.67M | 10.47M | Financing Cash Flow |
| 1.00K | 0.00 | 221.00K | -29.55M | 84.05M | 130.88M |
Spero Therapeutics Technical Analysis
Negative
0.72
Price Trends
0.81
Negative
0.96
Negative
1.14
Negative
Market Momentum
>-0.01
Negative
38.00
Neutral
29.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPRO, the sentiment is Negative. The current price of 0.72 is below the 20-day moving average (MA) of 0.79, below the 50-day MA of 0.81, and below the 200-day MA of 1.14, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 38.00 is Neutral, neither overbought nor oversold. The STOCH value of 29.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPRO.
Spero Therapeutics Risk Analysis
Spero Therapeutics disclosed 69 risk factors in its most recent earnings report. Spero Therapeutics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Spero Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
48 Neutral | $6.84B | 1.02 | -53.11% | 2.50% | 16.84% | 0.92% | |
46 Neutral | $41.79M | 10.83 | -89.62% | ― | -71.68% | -397.61% | |
45 Neutral | $41.22M | ― | -139.16% | ― | 20.58% | 15.90% | |
43 Neutral | $40.93M | ― | -49.69% | ― | ― | 38.98% | |
42 Neutral | $38.98M | ― | -33.25% | ― | -97.33% | -136.16% | |
34 Underperform | $42.54M | ― | 607.06% | ― | ― | 55.67% | |
27 Underperform | $36.85M | ― | -388.29% | ― | ― | 38.50% |
* Healthcare Sector Average
Performance Comparison
SPRO
Spero Therapeutics
0.72
-1.08
-60.00%
DYAI
Dyadic International
1.35
-0.40
-22.86%
SCYX
SCYNEXIS
0.95
-0.50
-34.48%
KALA
Kala Pharmaceuticals
5.73
-2.26
-28.29%
ITRM
Iterum Therapeutics
1.23
-0.37
-23.13%
ANTX
AN2 Therapeutics, Inc.
1.36
-2.04
-60.00%
Spero Therapeutics Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: -16.28% | Next Earnings Date: May 9, 2025
Earnings Call Sentiment Neutral
Spero Therapeutics is advancing its tebipenem HBr program with promising potential and strategic partnerships, but faces challenges with its SPR720 trial results and financial performance, including decreased revenue and increased losses.Highlights
Advancement of Tebipenem HBr Program
Spero Therapeutics announced a prespecified interim analysis in the Phase 3 PIVOT-PO clinical trial for tebipenem HBr, expected to be completed in Q2 2025. This program has the potential to change the treatment paradigm for complicated cUTI by offering an oral treatment option.
Financial Position and Milestones
As of December 31, 2024, Spero had $52.9 million in cash and equivalents. They expect existing funds and development milestones from GSK to support operations into Q2 2026. Potential milestone payments from GSK could total about $400 million, contingent on regulatory and commercialization success.
Pipeline and Strategic Partnerships
Spero is co-developing tebipenem HBr with GSK and expects GSK to assume responsibility for regulatory and commercialization efforts. This partnership could lead to significant milestone payments if successfully pursued.
Lowlights
SPR720 Phase IIa Trial Results
The SPR720 study did not meet its primary endpoint, showing insufficient separation from placebo. Potential dose-limiting safety signals were observed, including 3 cases of reversible grade 3 hepatotoxicity at 1,000 mg dose.
Discontinuation of SPR206 Development
Spero made the decision to discontinue development of SPR206, an IV-administered next-gen polymyxin antibiotic, after a thorough review and reprioritization.
Decreased Revenue and Increased Losses
Total revenue for 2024 was $48 million, a decrease from $103.8 million in 2023. The company reported a net loss of $68.4 million for 2024, compared to a net income of $22.8 million in 2023, attributed to decreased collaboration revenue and increased R&D expenses.
Company Guidance
During the Spero Therapeutics Fourth Quarter and Full Year 2024 Earnings Conference Call, the company provided key updates on its clinical programs and financial performance. Spero announced that the interim analysis for the Phase 3 PIVOT-PO trial of tebipenem HBr, co-developed with GSK, is expected to be completed in the second quarter of 2025. This trial aims to treat complicated urinary tract infections (cUTI) with a novel oral carbapenem. The company also reported that the SPR720 study did not meet its primary endpoint, with potential dose-limiting safety signals observed, leading to further assessment of the data. Financially, Spero ended the year with $52.9 million in cash and equivalents, generating $48 million in revenue for 2024, a decrease from $103.8 million in 2023, primarily due to reduced collaboration revenue. R&D expenses rose to $97 million due to increased clinical trial activities, while G&A expenses slightly decreased to $23.7 million. The company reported a net loss of $68.4 million for the year, compared to a net income of $22.8 million in 2023.Spero Therapeutics Corporate Events
Executive/Board ChangesLegal ProceedingsRegulatory Filings and Compliance
Spero Therapeutics Faces SEC Probe and Leadership Changes
Negative
Jan 10, 2025
Spero Therapeutics is currently addressing an SEC investigation related to its past public disclosures concerning the discontinuation of tebipenem HBr commercialization. In response, the company has initiated interim leadership changes, appointing Esther Rajavelu as Interim President and CEO. The company and its executives are cooperating with the SEC and are preparing to defend their disclosures, while Spero continues to focus on its strategic objectives and clinical developments.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.