Spero Therapeutics Reports $13.9 Million Net Loss and 37% Revenue Decline in Q1 2025

Spero Therapeutics, Inc. reported a net loss of $13.9 million for the first quarter of 2025, compared to a loss of $12.7 million in the same period of 2024. Total revenues for the quarter were $5.9 million, a decline of 37% from $9.3 million year-over-year. The decrease in revenue was primarily attributed to a significant drop in grant revenue, which fell to $763,000 from $5.1 million, while collaboration revenue from related parties increased to $5.1 million from $4.1 million. The company's accumulated deficit as of March 31, 2025, stood at $473.5 million, with cash and cash equivalents totaling $48.9 million.

Operating expenses for the quarter decreased to $20.6 million from $23.2 million in the prior year, driven by a reduction in research and development costs, which fell to $13.6 million from $17.3 million. This reduction was largely due to decreased clinical activity related to the SPR720 program, which the company has suspended following an interim analysis that did not meet its primary endpoint. General and administrative expenses increased to $6.8 million from $5.9 million, reflecting higher personnel-related costs associated with retention programs.

In terms of strategic developments, Spero Therapeutics has made significant organizational changes, including a restructuring initiative that resulted in a 13% reduction in workforce. This restructuring is aimed at reallocating resources to support the development of its lead product candidate, tebipenem HBr, which is currently in Phase 3 clinical trials. The company also received a deficiency letter from Nasdaq regarding its stock price, which has been below the required $1.00 for 30 consecutive business days, necessitating compliance by August 25, 2025, to avoid delisting.

Looking ahead, Spero Therapeutics anticipates continued operating losses and recognizes the need for additional funding to support its operations and product development. The company plans to prioritize advancing the Phase 3 clinical trial activities for tebipenem HBr and is exploring various funding options, including equity or debt financing, collaborations, and government grants. However, management has expressed substantial doubt about the company's ability to continue as a going concern within the next year, emphasizing the critical need for securing adequate funding to sustain operations and development efforts.