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Spero Therapeutics reports promising Phase 1 trial results for NTM-PD drug

Published 10/02/2024, 04:36 PM
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CAMBRIDGE, Mass. - Spero Therapeutics , Inc. (NASDAQ:SPRO), a biopharmaceutical company engaged in the development of treatments for rare diseases and multi-drug resistant bacterial infections, has announced the publication of Phase 1 clinical trial data for its drug candidate SPR720. The study's findings, which focus on the intrapulmonary pharmacokinetics (PK) of SPR719, the active component of SPR720, were published in the journal Antimicrobial Agents and Chemotherapy.

The study aimed to evaluate the safety and intrapulmonary PK of SPR719, particularly its concentrations in the pulmonary epithelial lining fluid (ELF) and alveolar macrophages (AM) within the lungs. These are crucial for dosing information as the company progresses with the development of SPR720 for the treatment of Non Tuberculous Mycobacterial-Pulmonary Disease (NTM-PD).

The trial involved 33 healthy adults who received a 1,000 mg dose of SPR720 once daily for a week. Blood samples and bronchoalveolar lavage (BAL) were utilized to assess the drug's presence in plasma and lung compartments. The active moiety SPR719 was found to have significant lung uptake, with higher concentrations in ELF and AM compared to plasma, suggesting potential efficacy in treating NTM-PD.

No unexpected safety issues were reported, supporting further investigation of SPR720 as a potential oral treatment option for NTM-PD, a condition caused by bacteria found in the environment that can lead to progressive lung damage and reduced quality of life.

The data also included an upcoming presentation at IDWeek, scheduled for October 16 to 19, 2024, in Los Angeles, where in vitro evaluation of microbial resistance against SPR719 will be discussed.

Spero Therapeutics, based in Cambridge, Massachusetts, continues to focus on addressing unmet medical needs in rare diseases and MDR bacterial infections. The company's forward-looking statements suggest ongoing efforts to advance its research and development programs, with the anticipation of contributing meaningful treatment options for patients with challenging medical conditions.

This article is based on a press release statement from Spero Therapeutics, Inc.

In other recent news, Spero Therapeutics reported a rise in revenue to $10.2 million during its second quarter 2024 earnings call, attributing the increase to collaboration and grant revenues, notably from a partnership with GSK and a BARDA contract. However, alongside this, the company also reported a net loss of $17.9 million. Amid these financial updates, Spero Therapeutics announced changes within its team with the departure of their Chief Medical Officer and the appointment of Dr. John Pottage as interim clinical lead.

On the development front, the company 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. Furthermore, Spero Therapeutics anticipates comprehensive data from studies on SPR720 to be available in the fourth quarter.

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, the company maintains a strong cash position with $63.5 million in cash and cash equivalents. These are among the recent developments that investors may want to consider when looking at Spero Therapeutics.

InvestingPro Insights

As Spero Therapeutics (NASDAQ:SPRO) advances its clinical trials for SPR720, investors may find value in examining the company's financial health and market position. According to InvestingPro data, Spero's market capitalization stands at $70.53 million, reflecting its status as a small-cap biopharmaceutical company focused on rare diseases and antibiotic-resistant infections.

The company's financial metrics paint an interesting picture. With a P/E ratio of 3.99, Spero appears to be trading at a relatively low valuation compared to earnings. This is further supported by an InvestingPro Tip indicating that the company is "trading at a low revenue valuation multiple." This could suggest that the market has not fully priced in the potential of Spero's drug pipeline, including SPR720.

Another InvestingPro Tip reveals that Spero "holds more cash than debt on its balance sheet," which is crucial for a biopharmaceutical company investing heavily in research and development. This strong liquidity position may provide the financial runway needed to bring SPR720 and other candidates through clinical trials and potentially to market.

However, it's important to note that analysts anticipate a sales decline in the current year, according to another InvestingPro Tip. This projection underscores the importance of successful clinical outcomes, such as the recently published Phase 1 data for SPR720, in driving future revenue growth.

For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide a fuller picture of Spero Therapeutics' investment potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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