CAMBRIDGE, Mass., June 13, 2019 (GLOBE NEWSWIRE) -- Spero Therapeutics, Inc. (Nasdaq:SPRO), a multi-asset clinical-stage biopharmaceutical company focused on identifying, developing and commercializing treatments in high unmet need areas involving multi-drug resistant (MDR) bacterial infections and rare diseases, today announced that it has entered into a definitive agreement to sell up to $10,000,000 of Spero’s common stock in a registered direct offering with Novo Holdings A/S to be issued in two tranches. The first tranche of the offering consists of 465,983 shares sold at a price of $10.73 per share, for aggregate gross proceeds to the Company of approximately $5,000,000, and is expected to close on or about June 14, 2019, subject to the satisfaction of customary closing conditions. The closing of the second tranche of $5,000,000 is triggered upon the earlier of (i) Spero’s public announcement of pharmacokinetic data from the lead-in cohort in its Phase 3 clinical trial of SPR994 and (ii) June 30, 2020. The number of shares to be sold in the second tranche will be determined by the volume weighted average trading price (VWAP) of Spero’s common stock around the trigger date. Because the shares of common stock are being sold directly to Novo Holdings A/S and not through a placement agent, underwriter or securities broker or dealer, Spero is not paying any underwriting discounts, commissions, concessions or similar compensation with respect to the sale.
Spero intends to use the net proceeds to advance its SPR720 program. SPR720 is Spero’s oral antibiotic being developed for the treatment of non-tuberculous mycobacterial (NTM) infections. In February 2019, SPR720 was granted Qualified Infectious Disease Product (QIDP) designation by the U.S. Food and Drug Administration for both the treatment of NTM infections and lung infections caused by non-tuberculous mycobacteria (NTM) and Mycobacterium tuberculosis (TB). The Novo REPAIR Fund focuses on priority pathogens as defined by the World Health Organization and the United States Centers for Disease Control, including TB. SPR720 is currently in a Phase 1 clinical trial in healthy volunteers, and Spero expects top-line data from the trial in the second half of 2019.
“Spero and Novo Holdings are both committed to addressing the growing, global problem of antibiotic resistance, and funding from this offering will provide additional capital to advance SPR720 and our robust pipeline of product candidates designed to combat antibiotic resistance,” said Ankit Mahadevia, M.D., Spero’s Chief Executive Officer.
Aleks Engel, Director of the REPAIR Impact Fund, commented: “We are delighted to be able to support a novel program targeting mycobacterial infections, one of the world’s greatest killers, and the highly capable team at Spero developing it.”
About Spero
Spero Therapeutics, Inc. is a multi-asset, clinical-stage biopharmaceutical company focused on identifying, developing and commercializing novel treatments for multidrug-resistant (MDR) bacterial infections and rare diseases.
About The Novo Holdings REPAIR Impact Fund
Novo Holdings founded in February 2018 the REPAIR Impact Fund on behalf of Novo Nordisk Foundation to invest in companies that are involved in the discovery and early development of therapies against resistant microorganisms. The aim of the REPAIR Impact Fund is to expand the therapeutic arsenal of mankind in the fight against antibiotic resistance. Read more at https://www.repair-impact-fund.com/
