Buy Rating Affirmed for Spero Therapeutics Amidst Drug Pipeline Progress and Strategic Partnerships

Analyst Ram Selvaraju of H.C. Wainwright reiterated a Buy rating on Spero Therapeutics (SPRO – Research Report), retaining the price target of $7.00.

Ram Selvaraju has given his Buy rating due to a combination of factors surrounding the progress and potential of Spero Therapeutics’ drug pipeline. Selvaraju’s optimism is largely anchored in the advancement of tebipenem HBr in a Phase 3 trial and the expected completion of enrollment for this trial by the second half of 2025. Additionally, the potential for a partnership with GlaxoSmithKline to expedite a Priority Review and potential product launch in 2026 further bolsters the positive outlook. The anticipation of significant financial milestones and royalty payments from GlaxoSmithKline, along with the expected conversion of receivables to cash, contributes to the financial health and prospects of Spero Therapeutics.

Moreover, Selvaraju highlights the importance of SPR720’s Phase 2a trial in demonstrating the drug’s antibacterial activity, with results expected in the second half of 2024. The unique position of SPR720 to potentially become the only agent to show early bactericidal activity in non-tuberculous mycobacterial pulmonary disease (NTM-PD) patients is a key driver of the Buy rating. The strategic approach to evaluating SPR720 in combination with other drugs and the planned commencement of Phase 2b enrollment in the first half of 2025 further exemplify the company’s robust development strategy, which underpins Selvaraju’s positive recommendation.

According to TipRanks, Selvaraju is a 4-star analyst with an average return of 5.5% and a 39.12% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as MoonLake Immunotherapeutics, Axsome Therapeutics, and Urogen Pharma.

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Spero Therapeutics (SPRO) Company Description:

Spero Therapeutics, Inc. is a clinical-stage biopharmaceutical company which focuses on identifying, developing, and commercializing novel treatments for multi-drug resistant, or MDR, bacterial infections. Its pipeline product candidates include SPR994, SPR741, and SPR206. The company was founded by Ankit A. Mahadevia and Laurence Rahme in April 2013 and is headquartered in Cambridge, MA.