Spero Therapeutics (SPRO) Q4 2024 earnings summary

Executive summary

• Focused on developing novel treatments for rare diseases and multi-drug-resistant bacterial infections, with tebipenem HBr as the lead candidate in a phase III trial for complicated UTIs, co-developed with GSK; interim analysis expected in Q2 2025.

• SPR720 program for nontuberculous mycobacterial pulmonary disease did not meet its primary endpoint and showed dose-limiting toxicity; oral program suspended and full data analysis ongoing.

• Discontinued development of SPR206 after pipeline reprioritization in Q1 2025.

• Leadership changes implemented in response to an SEC Wells Notice regarding 2022 disclosures, with Esther Rajavelu appointed Interim CEO and Frank Thomas named Chairman.

Financial highlights

• Cash and cash equivalents were $52.9 million as of December 31, 2024.

• Q4 2024 revenue was $15 million, down from $73.5 million in Q4 2023; full year 2024 revenue was $48 million, down from $103.8 million in 2023, mainly due to lower collaboration revenue.

• R&D expenses rose to $28.8 million in Q4 2024 (from $16.6 million in Q4 2023) and $97 million for the year (from $51.4 million in 2023), driven by increased clinical trial activity.

• Net loss of $20.9 million for Q4 2024 and $68.6 million for the year, compared to net income of $51.2 million and $22.8 million, respectively, in 2023.

• General and administrative expenses were $7.1 million in Q4 2024 (up from $6.4 million); full-year 2024 G&A expenses were $23.7 million (down from $25.6 million).

Outlook and guidance

• Existing cash and $47.5 million in non-contingent GSK milestones expected to fund operations into Q2 2026.

• Pre-specified interim analysis for tebipenem HBr phase III trial expected in Q2 2025; GSK to assume regulatory and commercialization responsibilities post-trial, with up to $400 million in potential milestones.

• Awaiting full data analysis for SPR720 to determine next steps.