Benzinga | Sep 30, 2021 03:00PM EDT

Spero Therapeutics Inks Revenue Interest Financing Agreement With HealthCare Royalty Partners

* Spero Therapeutics Inc (NASDAQ:SPRO) has entered into a revenue interest financing agreement with HealthCare Royalty Partners for up to $125 million.

* Spero will use the proceeds to prepare for the anticipated launch of tebipenem HBr and support the continued clinical development of SPR720 and SPR206.

* Under the terms of the agreement, Spero will receive $50 million from HealthCare Royalty Partners in October.

* Spero is also entitled to receive an additional $50 million upon the FDA approval of tebipenem HBr for a complicated urinary tract infection and an additional $25 million for the commercial milestone.

* HealthCare Royalty Partners will receive a tiered royalty on applicable revenue generated by Spero products until the aggregate amount paid to HealthCare Royalty Partners is two and a half times the total investment amount funded.

* The tiered royalty will begin in the low double digits and decrease to the low single digits upon certain annual revenue thresholds.

* Related: Spero Therapeutics Stock Surges On $40M Equity Funding, SPR206 Licensing Pact With Pfizer.

* Price Action: SPRO stock is up 1.38% at $18.43 during the market session on the last check Thursday.