Spero Therapeutics appoints new CEO and board nominee

CAMBRIDGE, Mass. - Spero Therapeutics, Inc. (NASDAQ:SPRO), a biopharmaceutical company specializing in novel treatments for rare diseases and multi-drug resistant infections, announced the appointment of Esther Rajavelu as its President and Chief Executive Officer, effective May 2, 2025. The company, currently valued at approximately $40 million, is trading below its InvestingPro Fair Value, suggesting potential upside for investors. Ms. Rajavelu, who has been serving as Spero’s Interim President and CEO since January 2025, will also be nominated for election to the company’s Board of Directors at the 2025 annual stockholders meeting.

Rajavelu has a history with Spero, having held the positions of Chief Financial Officer, Treasurer, and Chief Business Officer since November 2023. She will maintain her roles as CFO and Treasurer while taking on the new leadership responsibilities. According to InvestingPro data, the company maintains a strong financial position with more cash than debt on its balance sheet and a healthy current ratio of 2.19, indicating solid short-term liquidity. Frank Thomas, Chairman of the Board of Directors, praised Rajavelu’s leadership and focus on advancing Spero’s programs, specifically highlighting her partnership efforts with GSK.

The appointment comes as Spero prepares for an update on its PIVOT-PO Phase 3 trial for tebipenem HBr, the company’s priority clinical program. Rajavelu expressed gratitude for the trust placed in her by the Board and her colleagues and reiterated her commitment to advancing the tebipenem HBr program and delivering shareholder value.

Rajavelu succeeds Sath Shukla, with whom Spero has mutually agreed to separate effective May 2, 2025. Shukla will also step down from the Board of Directors. Thomas acknowledged Shukla’s contributions to Spero, including his role in advancing the partnership with GSK for the approval of tebipenem HBr, and wished him success in future endeavors.

This leadership transition occurs amidst Spero’s ongoing efforts to address the challenges of multi-drug resistant bacterial infections. The company’s forward-looking statements indicate a focus on the progress and results of their research and development programs, including the tebipenem HBr clinical trial. While the company faces near-term challenges with analysts projecting a decline in net income, InvestingPro analysis reveals 6 additional key insights about the company’s financial health and growth prospects, available exclusively to subscribers.

The information for this article is based on a press release statement from Spero Therapeutics. The company’s future plans include continued reliance on third-party collaborations, such as their agreement with GSK, and efforts to secure additional funding and retain key personnel. With revenue of $48 million in the last twelve months and a beta of 0.64 indicating lower volatility than the broader market, Spero’s financial performance and operational milestones remain a priority as they work towards potential FDA approval and commercialization of their product candidates.

In other recent news, Spero Therapeutics reported its financial results for the fourth quarter of 2024, revealing a diluted net loss per share of $0.38, which was slightly below the forecast of $0.36. The company’s revenue for the quarter was $15 million, significantly exceeding the forecast of $4.5 million. Despite the revenue beat, Spero experienced a challenging quarter with a net loss of $20.7 million, and its full-year revenue for 2024 decreased to $48 million from $103.8 million in 2023. The company extended its cash runway to Q2 2026, aided by a $47.5 million milestone payment from GSK. However, Spero discontinued the development of SPR-720 due to safety concerns, which could impact future revenue streams. The company is focused on advancing its lead candidate, Tebipenem HBR, with an interim analysis of the Phase III PIVOT PO trial expected in Q2 2025. Analysts have noted the potential for Spero to receive milestone payments from GSK, contingent on the successful submission of a new drug application for Tebipenem HBR.

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