GSK eyes Spero's experimental urinary tract infection drug, takes stake (updated)

Spero Therapeutics

22/09/2022 08:16

(Adds executive comment, details on deal, drug and background,
shares)
       Sept 22 (Reuters) - British drugmaker GSK  GSK.L  said
on Thursday it would take a stake in Spero Therapeutics  SPRO.O 
as part of a licensing agreement for the U.S.-based drug
developer's experimental antibiotic for complicated urinary
tract infections (cUTI).
    GSK will pay $66 million upfront for the oral antibiotic
tebipenem HBr and buy $9 million of Spero shares as part of the
deal.
    "Tebipenem HBr complements GSK's infectious disease strategy
and is consistent with our commitment to find value-enhancing
opportunities to build a strong late-stage portfolio," GSK's
chief commercial officer Luke Miels said in a statement. 
    In June, the U.S. Food and Drug Administration declined to
approve tebipenem, saying a late-stage study testing it was
insufficient and an additional study would be required. Spero
has said it plans a new late-stage trial for 2023. 
    The treatment has a fast track designation from the U.S.
drug agency for cUTI and acute pyelonephritis. 
    GSK agreed to purchase 7.45 million Spero shares at about
$1.20805 per share, which will not exceed 19.99% ownership of
Spero by GSK and its affiliates, the companies said.
    Spero's shares closed down 6.7% at 82 cents on Wednesday,
while GSK was marginally down in early trade on Thursday amid
broader market weakness. 
    Spero developed tebipenem HBr with Japan's Meiji Seika
Pharma Co Ltd and is part of a subclass of antibiotics deemed to
be effective in treating drug-resistant bacterial infections and
is intended for adults with limited treatment options.
 (Reporting by Amna Karimi and Pushkala Aripaka in Bengaluru;
Editing by Sriraj Kalluvila)
 ((Amna.Karimi@thomsonreuters.com; +91 8083261226;))