Synthetic RoyaltyTM FinancingUp to $125 Million
Tebipenem HBr (tebipenem pivoxil hydrobromide) is being developed as a broad spectrum carbapenem antibiotic formulated as an immediate release oral tablet for multi-drug resistant (MDR) gram-negative infections. Tebipenem has demonstrated potent in vitro and in vivo activity against a wide variety of gram-negative isolates including Extended Spectrum Beta-Lactamases (ESBLs) – enzymes conferring resistance to certain antibiotics – at levels at least as potent as other carbapenems used in the U.S.
As Spero Therapeutics was preparing for the launch of Tebipenem HBr, the company was seeking non-dilutive financing to support commercial and clinical development activities. In September 2021, HealthCare Royalty and Spero announced a Synthetic RoyaltyTM Financing for up to $125 Million. Under the terms of the agreement, Spero will receive $50 million at closing. Spero is also entitled to receive an additional $50 million upon the U.S. Food and Drug Administration (FDA) approval of tebipenem HBr (Tebi) for a complicated urinary tract infection (cUTI) indication, and an additional $25 million upon the attainment of a prespecified commercial milestone and mutual agreement between Spero and HCRx. If Tebi does not receive FDA approval for cUTI by December 31, 2022, Spero will return the $50 million payment received at closing.