Spero Therapeutics (NASDAQ:SPRO) stock is taking a beating on Tuesday after the biotech company revealed a change in strategic direction.
Let’s get into that news below!
- According to Spero Therapeutics, the company wants to focus more on advancing promising clinical-stage pipeline candidates.
- This has it deferring commercialization activities for tebipenem HBr.
- Spero Therapeutics notes that current talks with the U.S. Food and Drug Administration (FDA) lead it to believe that tebipenem won’t receive approval.
- This has it deciding to limit efforts connected to the treatment as a result.
- With that news announced, Spero Therapeutics is also cutting its workforce in kind.
- This has it reducing the size of its workforce by 75%.
- The company will then reorganize to focus on clinical candidates SPR720 and SPR206.
- Spero Therapeutics notes that this change will allow it to save on operational costs.
- It states that these savings should allow the company to continue its operations through 2023.
Ankit Mahadevia, M.D., CEO of Spero Therapeutics, said this about the news sending SPRO stock lower today.
“While this decision was difficult, we believe it is in the best interest of the company and its shareholders. The need for antibiotic resistance solutions is more pressing than ever before, and both SPR720 and SPR206 are in clinical development stages and have shown promising results to date.”
SPRO stock is seeing heavy trading following the reveal of its plans today. This has some 12 million shares on the move as of this writing. For the record, that company’s daily average trading volume is closer to 208,000 shares.
SPROs tock is down 60.3% as of Tuesday morning.
Investors looking for more recent stock market news are in luck!
InvestorPlace has all the hottest news that traders need to know about for Tuesday! A few examples include what’s happening with shares of Avis Budget Group (NASDAQ:CAR), Western Digital (NASDAQ:WDC), and AST SpaceMobile (NASDAQ:ASTS) stock today. You can find out all about these matters at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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