Spero Therapeutics, Inc. Q2 FY2024 earnings call

• Change in executive leadership: Chief Medical Officer Dr. Kamal Hamed departed, and Dr. John Pottage will oversee clinical programs during the transition.
• SPR720: Developing as first-line oral agent for NTM-PD. Phase 2a trial has 25 patients (treatment-naive and non-refractory treatment-experienced), Q4 to share data from ongoing and completed studies. Also, two Phase 1 studies in healthy volunteers to be reported.
• Tebipenem-HBr: Ongoing Phase 3 Global PIVOT-PO clinical trial on track, target enrollment ~2,648 patients, goal to complete enrollment in second half of 2025.
• SPR206: Partnered with Pfizer for European markets, FDA cleared ING to advance to Phase 2 trial in hospital-acquired or ventilator-associated bacterial pneumonia, but contingent on non-dilutive funding.

Total revenue for the second quarter of 2024 was $10.2 million compared with $2.7 million for the same period in 2023. The increase was due to higher collaboration revenue from the GSK agreement and grant revenue from the BARDA contract for tebipenem HBr, partially offset by decreases under the NIAID agreement for SPR206 and collaboration revenue from the Pfizer agreement for SPR206. Research and development expenses for the second quarter of 2024 were $23.7 million vs. $9.5 million in 2023, driven by higher direct costs for the tebipenem-HBr Phase 3 trial and SPR720 Phase 2a clinical trial, partially offset by lower costs for SPR206. G&A expenses were $5.5 million in 2024 vs. $6.1 million in 2023, with a year-over-year decrease due to lower personnel-related costs partially offset by higher professional and consulting fees. Spero reported a net loss of $17.9 million or $0.33 per share in the second quarter of 2024, compared to a net loss of $11.9 million or $0.23 per share in the same period of 2023.

• Ended Q2 with $63.5 million in cash and cash equivalents. Anticipates $24 million milestone payments from GSK every six months. Cash and non-dilutive funding commitments sufficient to fund operations into late 2025.
• SPR720 to share comprehensive data set in Q4.
• Tebipenem-HBr Phase 3 trial expected to complete enrollment in second half of 2025.
• SPR206 Phase 2 trial contingent on availability of non-dilutive funding.

Forward-looking statements involve substantial risks and uncertainties. Actual results could differ from forward-looking statements. Risks detailed in Spero Therapeutics' SEC filings, including in the risk factor section of the Form 10-Q for Q2 2024.

Q: Significance of IDWeek data and details on Kamal's departure?

A: Kamal's departure has no relation to data or programs. Excited about presenting resistance data at IDWeek for SPR720.

Q: Duration of MIC90 coverage for SPR720 doses?

A: Data not yet disclosed, will be part of reported data.

Q: Mix of treatment naive and experienced patients in SPR720 Phase 2a trial?

A: Data blinded, mix not disclosed yet. Time to positivity is a secondary endpoint measuring time to bacterial growth in liquid media inoculated with sputum sample, longer time to positivity is better.

Q: Granularity on prodrug conversion of SPR720 and additional combinations for SPR720?

A: Will provide details on prodrug conversion via publications. For combinations, azithromycin and ethambutol are currently evaluated, with openness to further options as development progresses