Spero Therapeutics (SPRO) 5 Aug 24 2024 Q2 Earnings call transcript

In a recent earnings call, Spero Therapeutics provided an update on its second-quarter financial results and highlighted its ongoing clinical pipeline, particularly its promising drug SPR720 for nontuberculous mycobacterial pulmonary disease (NTM-PD). The call was led by Satyavrat Shukla, Chief Executive Officer, and Esther Rajavelu, Chief Financial Officer and Chief Business Officer, with a special mention of the departure of Dr. Kamal Hamed as Chief Medical Officer.

Clinical Pipeline and Future Prospects

Spero Therapeutics is developing SPR720, an oral agent for NTM-PD, a condition with an estimated 245,000 patients in the U.S., EU, and Japan. With no approved first-line therapy for these patients, SPR720's potential is significant, given its novel mechanism of action and lack of cross-resistance against marketed antibiotics. The company anticipates sharing comprehensive data from ongoing and recently completed clinical studies, including a Phase IIa proof of concept study and supportive Phase I studies, in Q4 2024.

The company also highlighted its Phase III clinical trial for tebipenem HBr, the first potential oral carbapenem for complicated urinary tract infections. With enrollment on track and a goal to complete it in the second half of 2025, tebipenem HBr has the potential to address the need for an oral carbapenem in patients with complicated urinary tract infections caused by multidrug-resistant uropathogens, potentially reducing hospitalization or length of stay.

Financial Health and Future Outlook

Spero Therapeutics ended the second quarter with $63.5 million in cash and equivalents, with anticipation of three remaining tranches of development milestone payments from GSK. The company expects its cash and cash equivalents, together with other non-dilutive funding commitments, to be sufficient to fund operating expenses and capital expenditure requirements into late 2025.

The company reported a net loss of $17.9 million for the second quarter ended June 30, 2024, a significant increase from the net loss in the same period in 2023. This increase was primarily due to higher collaboration revenue related to the agreement with GSK for tebipenem HBr and an increase in grant revenue related to its BARDA contract. Research and development expenses also increased due to higher direct costs related to the pivotal Phase III trial for tebipenem HBr and the Phase IIa clinical trial for SPR720.

Executive Changes and Future Plans

The call also saw the departure of Dr. Kamal Hamed as Chief Medical Officer. The company announced that Dr. John Pottage, a distinguished industry veteran, will help oversee and provide strategic guidance for Spero's clinical programs during the transitionary period. The company is currently searching for a new Chief Medical Officer.

Looking ahead, Spero Therapeutics is focused on advancing its clinical pipeline, particularly the promising drug SPR720, and is excited about the upcoming data readouts in Q4 2024. With a robust pipeline and a positive outlook, Spero Therapeutics is poised for continued growth and innovation in the field of antibiotic research and development.