Non-recourse, non-dilutive funding from Healthcare Royalty will back Phase 2 development of SP001 and monetizes part of future Utebzi milestone and royalty payments.
Spero Therapeutics said it has entered a $105 million non-recourse, non-dilutive royalty financing deal with affiliates of Healthcare Royalty, a business of KKR, using future Utebzi milestone and royalty payments as the source of repayment. The company said the proceeds will primarily support development of SP001, its Phase 2-ready immunology candidate in-licensed from Innovent Biologics, and that the transaction extends its cash runway into the second half of 2029. The financing was completed alongside Spero’s exclusive license agreement with Innovent for SP001 and comes after last month’s U.S. approval of Utebzi for complicated urinary tract infections. Under the agreement, Healthcare Royalty will receive certain payments tied to Utebzi sales from GSK until the loan is repaid, after which Spero will retain 35% of subsequent GSK payments, preserving exposure to longer-term commercial upside.