Spero Therapeutics: 'Buy' On Utebzi Royalty Deal For Funding And SP001 In-Licensing

Spero Therapeutics is initiated with a "Buy" rating, driven by its strategic pivot to immunology and strong non-dilutive financing. SPRO secured FDA approval for Utebzi and a $105M royalty deal, enabling funding for SP001 development without shareholder dilution. SP001, a third-generation anti-CD40L antibody, targets IgG4-RD and Sjögren’s disease, with phase 2 trials planned for 2027 and a differentiated, B-cell-sparing MOA. Risks include regulatory clearance, milestone obligations up to $1.1B, and clinical trial uncertainty, but SPRO’s cash runway now extends into H2 2029.

I'm initiating coverage of Spero Therapeutics ( SPRO ) with a "Buy" rating. The reason why I believe it deserves this rating is because it has been able to re-establish itself as a company to move