AP - Spero Therapeutics stock gains on $40M equity investment from Pfizer and licensing agreement for SPR206

Spero Therapeutics (SPRO) shares surged 29% premarket in response to $40M equity investment made by Pfizer (PFE).Pfizer has purchased 2,362,348 company's common shares at $16.93 per share.The two parties have also inked a licensing agreement for SPR206, an intravenously (IV)-administered next-generation polymyxin product candidate.As per the licensing agreement, Spero has granted Pfizer the rights to develop, manufacture, and commercialize SPR206 in ex-U.S. and ex-Asia territories, for which it will receive up to $80M in development and sales milestones, and high single digit to low double-digit royalties on net sales of SPR206 in these territories. Spero expects proceeds to extend its cash runway into the second half of 2022 and will be used to prepare for the potential approval and launch of tebipenem HBr, as well as to support the continued clinical development of SPR720 and SPR206.Also read: Spero Therapeutics initiates two early-stage trials for SPR206

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Spero Therapeutics stock gains on $40M equity investment from Pfizer and licensing agreement for SPR206