GSK
GSK plc
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Yeah exactly, the terms of the royalties aren’t that great - but compared to the rest of my portfolio it’s good to have some ‘safer’ picks. Not banking on the buyout, but I just think at this point why would GSK not just buy them out? They are doing all the commercialisation and sales, SPRO don’t really have anything to offer anymore and have nothing in the pipeline.
They have already made 2 acquisitions, on much riskier plays, so I’m thinking management is trigger happy. But it’s all just speculation!

I like it as well and I think the drug has great potential, but decided against taking a position based on what I judged to be the limited GSK-related upside, which you mention. That said, I agree the chance for a decent return is quite good and you seem well aware of the caveats.
I'd be surprised if GSK buys them out, given how much they already stand to collect from sales. I suppose if it performs above expectations it's a possibility.

GSK.nyse
Good luck and have fun out there!

Spero Therapeutics have a PDUFA date coming on June 18th. This is the second attempt at approval for the same drug, this time with a clear SPA from the FDA and the backing of GSK.
The drug, Tebipenem HBr will be the only non-IV carbapenem on the market. This is the last resort treatment for antibiotic resistant infections.
The Phase 3 was extensive and GSK know what they are doing, rejection probability is very low here.
The commercialisation will be funded and ran by GSK also, no dilution and strong sales team. Milestone payments of $100m on the first commercial sale, with payments up to $225m plus low double digit royalties.
The royalty agreement is quite punitive however, with royalties also owed out on the royalties they earn.
This isn’t a 10x. It’s a simple ride to the first milestone payments, with short time horizon and no dilution. Money could be made if GSK buy them out, which is a possibility.
Check out the full write up here:
https://open.substack.com/pub/needlefinder/p/spero-therapeutics-a-sleep-easy-biotech?r=378x0l&utm\_medium=ios

Yeah exactly, the terms of the royalties aren’t that great - but compared to the rest of my portfolio it’s good to have some ‘safer’ picks. Not banking on the buyout, but I just think at this point why would GSK not just buy them out? They are doing all the commercialisation and sales, SPRO don’t really have anything to offer anymore and have nothing in the pipeline.
They have already made 2 acquisitions, on much riskier plays, so I’m thinking management is trigger happy. But it’s all just speculation!

I like it as well and I think the drug has great potential, but decided against taking a position based on what I judged to be the limited GSK-related upside, which you mention. That said, I agree the chance for a decent return is quite good and you seem well aware of the caveats.
I'd be surprised if GSK buys them out, given how much they already stand to collect from sales. I suppose if it performs above expectations it's a possibility.

GSK.nyse
Good luck and have fun out there!

Spero Therapeutics have a PDUFA date coming on June 18th. This is the second attempt at approval for the same drug, this time with a clear SPA from the FDA and the backing of GSK.
The drug, Tebipenem HBr will be the only non-IV carbapenem on the market. This is the last resort treatment for antibiotic resistant infections.
The Phase 3 was extensive and GSK know what they are doing, rejection probability is very low here.
The commercialisation will be funded and ran by GSK also, no dilution and strong sales team. Milestone payments of $100m on the first commercial sale, with payments up to $225m plus low double digit royalties.
The royalty agreement is quite punitive however, with royalties also owed out on the royalties they earn.
This isn’t a 10x. It’s a simple ride to the first milestone payments, with short time horizon and no dilution. Money could be made if GSK buy them out, which is a possibility.
Check out the full write up here:
https://open.substack.com/pub/needlefinder/p/spero-therapeutics-a-sleep-easy-biotech?r=378x0l&utm\_medium=ios