Business Context and Reporting Period
Company: Spero Therapeutics, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: July 16, 2018
Event: Award of government contracts for the development of SPR994.
Key Financial Metrics
This filing reports specific contract award values rather than standard financial statement metrics (revenue, profit, cash flow, margins, debt, or liquidity). The filing text does not provide a clear value for the company's current financial position or operating results.
| Funding Source | Commitment Type | Amount | Period/Conditions |
|---|---|---|---|
| BARDA | Base Period Commitment | $15.7 million | July 1, 2018 to June 30, 2021 |
| BARDA | Option 1 (Milestone-based) | $13.6 million | Subject to clinical progress and data milestones |
| BARDA | Option 2 (Milestone-based) | $14.9 million | Subject to biodefense study results |
| DTRA | Initial Commitment | $1.25 million | 2018 |
| DTRA | Additional Potential Funding | $8.75 million | 2018-2022, subject to preclinical milestones |
Total Potential BARDA Award: Up to $44.2 million.
Total Potential DTRA Funding: Up to $10.0 million (Note: The filing states the Company will not receive funds directly from DTRA).
Material Changes
The filing announces a material event regarding the award of a contract from the Biomedical Advanced Research and Development Authority (BARDA) to develop SPR994 for complicated urinary tract infections (cUTI) and biodefense pathogens. This represents a significant potential revenue stream contingent on milestone achievement.
Outlook, Risks, and Contingencies
- Scope of Work: The contract covers chemistry, manufacturing and controls (CMC), clinical microbiology, and in vitro/in vivo characterization for cUTI. It also includes nonclinical biodefense studies for anthrax, plague, and melioidosis conducted by USAMRIID.
- Contingencies: The majority of the funding ($28.5 million from BARDA and $8.75 million from DTRA) is contingent upon the Company achieving specified milestones related to clinical progress, data, and preclinical survival benefits.
- Future Clinical Trials: Upon achieving specific milestones, BARDA may exercise options to fund a bronchoalveolar lavage study and a clinical trial in pneumonia patients.
- Funding Structure: While DTRA is providing up to $10.0 million to cover costs, the filing explicitly states the Company will not receive these funds directly.
Investor Verification Checklist
- Verify the specific milestones required to trigger the $13.6 million and $14.9 million BARDA options.
- Confirm the timeline for the initial $15.7 million disbursement and the schedule for the three-year base period.
- Clarify the mechanism by which DTRA funding is utilized if the Company does not receive the funds directly.
- Review the status of the SPR994 program regarding cUTI and biodefense indications to assess the probability of milestone achievement.