Spero Therapeutics, a clinical-stage biopharmaceutical company focused on advancing next-generation medicines in immunology and inflammation, announced a $105 million non-recourse non-dilutive royalty financing transaction with affiliates of Healthcare Royalty, a business of KKR. Under the agreement, Healthcare Royalty will receive a portion of future milestone and royalty payments associated with sales of Utebzi (tebipenem pivoxil). Proceeds will primarily support advancement of the company’s lead immunology drug candidate, SP001, a Phase 2-ready, Fc-silent, third-generation anti-CD40L monoclonal antibody with potential across a range of immune-mediated diseases.
The financing was completed concurrently with an exclusive license agreement with Innovent Biologics for the SP001 asset and follows last month’s U.S. approval of the company-developed Utebzi for complicated urinary tract infections. The company has granted GSK an exclusive license to develop and commercialize Utebzi in all territories except certain territories in Asia, where Meiji holds development and commercialization rights. Following the transaction, the company updated its cash runway guidance into the second half of 2029.
Under the terms of the agreements, Healthcare Royalty will provide a $105 million payment at closing, net of original issue discount and applicable fees, in exchange for rights to anticipated payments from Utebzi sales owed by GSK. Healthcare Royalty will receive quarterly principal and interest payments derived solely from those GSK payments until the loan balance is repaid, after which the company will retain 35% of subsequent GSK payments related to Utebzi sales, preserving potential long-term upside from the asset. J. Wood Capital Advisors acted as the company’s exclusive financial adviser and WilmerHale acted as legal advisor on the transaction, while Sidley Austin LLP acted as legal advisor to Healthcare Royalty.
SP001 is a third-generation, fully humanized, Fc-silent IgG1 monoclonal antibody targeting CD40L, an upstream immune activation signal involved in T-cell, B-cell, antigen-presenting cell, and platelet biology. By blocking CD40L, SP001 has the potential to provide a targeted, non-B-cell-depleting treatment across multiple immune-mediated diseases where immune-cell interactions drive chronic inflammation, relapse, and tissue damage, and is designed to address platelet activation concerns associated with earlier anti-CD40L antibodies.
KEY QUOTES:
“Over the past year, in collaboration with GSK, we successfully advanced Utebzi through FDA approval, while executing on our strategy to strengthen Spero and position the Company for its next phase of growth. This transaction further strengthens our balance sheet and provides non-dilutive capital as we embark on an immunology-focused strategy. By unlocking immediate value from a portion of future Utebzi milestone and royalty streams, we are well positioned to execute on the clinical development for SP001 and continue building a differentiated pipeline for patients with immune-mediated diseases.”
Esther Rajavelu, President and Chief Executive Officer of Spero Therapeutics
“We are pleased to partner with Spero on this acquisition of certain Utebzi milestones and royalties. As the first approved oral carbapenem therapy, Utebzi represents a meaningful innovation and value proposition for patients, physicians and payers.”
Clarke Futch, Chairman and CEO of HealthCare Royalty
