Spero Therapeutics (NASDAQ:SPRO) is flying high in the pre-market session today after a multitude of positive developments. The company has entered into an exclusive license agreement with GSK for the former’s antibiotic candidate, tebipenem HBr.
The late-stage product is targeted for the treatment of complicated urinary tract infections. The agreement helps GSK boost its pipeline of late-stage products.
Importantly, the Phase 3 trial of the drug is expected to begin in 2023. The deal includes an upfront payment of $66 million, total milestone payments of $525 million, and royalties in low-single digit to low double-digit for Spero.
But there’s more, GSK is also making a $9 million investment in Spero. The market capitalization of the company currently stands at ~$31 million!
The transactions are anticipated to close in Q4 2022.
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