CAMBRIDGE, Mass. - Spero Therapeutics , Inc. (NASDAQ:SPRO), a clinical-stage biopharmaceutical company, announced findings from a study on its investigational drug SPR719, showing a low tendency for resistance development in Mycobacterium avium Complex Pulmonary Disease (NTM-PD). The results were presented at IDWeek 2024 on Friday.
The study, conducted in collaboration with Microbiologics, evaluated the spontaneous mutation frequencies of SPR719, both alone and in combination with standard of care (SOC) antibiotics, against macrolide susceptible and resistant Mycobacterium avium complex (MAC) strains. SPR719 is an oral prodrug that, when converted to its active form in the body, targets a unique site in mycobacteria, offering a different mechanism than current antibiotics.
The data indicated that SPR719 had a significantly lower rate of resistance development compared to SOC antibiotics, with mutation frequencies approximately three orders of magnitude lower. In tests, SPR719 demonstrated high potency with minimal inhibitory concentration (MIC) values of 2 ug/mL for both susceptible and resistant MAC strains. Notably, no resistant colonies emerged when SPR719 was combined with either clarithromycin or ethambutol.
The findings suggest that SPR719 could be a valuable addition to the combination regimens typically required for NTM-PD treatment, a chronic and progressive lung disease caused by bacteria found in the environment. NTM-PD is a growing concern, with an estimated 130,000 cases in the U.S. and Europe and an 8% annual increase in incidence.
Spero Therapeutics focuses on developing treatments for rare diseases and multi-drug resistant bacterial infections. While this press release offers forward-looking statements regarding the potential benefits of SPR719 and Spero's product candidates, these are subject to various factors that could affect the actual outcomes, including regulatory decisions and clinical trial results.
The company's strategy and anticipated milestones, including the progress of its preclinical studies and clinical trials, are based on current management expectations and could change due to numerous risks and uncertainties. These statements should not be seen as guarantees of future performance.
This article is based on a press release statement from Spero Therapeutics, Inc.
In other recent news, Spero Therapeutics has shared promising results from a Phase 1 trial of its drug candidate SPR720, aimed at treating Non-Tuberculous Mycobacterial-Pulmonary Disease (NTM-PD). The trial, which involved 33 healthy adults, indicated potential efficacy in treating NTM-PD without reporting any unexpected safety issues. On the financial side, Spero Therapeutics recorded a rise in revenue to $10.2 million during its second quarter 2024 earnings call, largely due to collaboration and grant revenues. However, a net loss of $17.9 million was also reported.
In addition, the company announced the departure of their Chief Medical Officer and the appointment of Dr. John Pottage as interim clinical lead. On the development front, Spero Therapeutics highlighted the progress of their lead assets SPR720, tebipenem-HBr, and SPR206. The Phase 3 trial for tebipenem-HBr is expected to complete enrollment in the second half of 2025. Despite a wider net loss in Q2 2024 compared to the same period in 2023, and a decrease in revenue from the NIAID agreement and Pfizer (NYSE:PFE) collaboration for SPR206, Spero Therapeutics maintains a strong cash position with $63.5 million in cash and cash equivalents. Lastly, H.C. Wainwright has reaffirmed a Buy rating on Spero Therapeutics.
InvestingPro Insights
As Spero Therapeutics (NASDAQ:SPRO) advances its promising SPR719 drug candidate, investors should consider some key financial metrics and insights from InvestingPro. The company's market capitalization stands at $66.48 million, reflecting its position as a small-cap biopharmaceutical firm focused on developing treatments for rare diseases and multi-drug resistant bacterial infections.
One notable InvestingPro Tip highlights that Spero holds more cash than debt on its balance sheet, which is crucial for a clinical-stage company as it provides financial flexibility to fund ongoing research and development efforts, including the SPR719 program. This strong liquidity position is further supported by another InvestingPro Tip indicating that the company's liquid assets exceed short-term obligations, suggesting a solid financial foundation to support its clinical trials and potential commercialization efforts.
However, investors should be aware that analysts anticipate a sales decline in the current year, according to an InvestingPro Tip. This projection aligns with the nature of clinical-stage biopharmaceutical companies, which often experience fluctuating revenues as they progress through various stages of drug development and regulatory approvals.
It's worth noting that Spero's P/E ratio stands at 3.73, which is relatively low for the biotech sector. This could indicate that the market has not fully priced in the potential of SPR719 and other pipeline candidates. Additionally, the company's revenue growth in the last twelve months as of Q2 2024 was an impressive 118.43%, showcasing significant year-over-year improvement.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 9 more InvestingPro Tips available for Spero Therapeutics, providing a deeper understanding of the company's financial health and market position.
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