JWCA advises Spero on its partial monetization of global milestone and royalty rights to Utebzi™ for $105 million in non-recourse royalty-backed notes while retaining future participation rights
July 2026 | read press release
Transaction Background
Spero Therapeutics, Inc. (“the Company”) hired J. Wood Capital Advisors as its Financial Advisor to advise on a capital raise based on the Company’s right to receive milestones and royalties from global net sales of Utebzi™ (tebipenem pivoxil), the first and only approved oral carbapenem antibiotic therapy in the U.S., for complicated urinary tract infections. GSK markets Utebzi globally except for select Asian territories.
Objectives:
Pull forward value and proceeds from a passive royalty stream and avoid recourse back to the Company
Concurrently fund a transformational business development acquisition that pivots the Company towards a Phase 2 immunology asset from Innovent Biologics
Maximize upfront proceeds to support the new business development and financial plan and maximize runway at acquisition closing
Retain future upside value in Utebzi and achieve a competitive cost of capital
JWCA designed and ran a process to help Spero achieve its objectives. Upon obtaining terms, JWCA:
Analyzed offers to help the Company negotiate and improve the proposal that best met its objectives
Provided advice and support to the Company around valuation, structuring, documentation, and investor messaging
Results
Spero raised significant outside capital from a passive asset without dilution or recourse to Spero parent (i.e. special purpose vehicle serviced only by GSK payments), allowing the Company to concurrently announce its business development transaction without a financing overhang (runway into 2H 2029)
Achieved financing outcome that balanced the Company’s objectives, including maximizing both near-term proceeds and retaining significant future value at a competitive cost of capital
