Pfizer, Spero Sign Licensing Deal for SPR206 in Ex-Asia, Ex-U.S. Regions; Street Says Hold
Global pharmaceutical and biotechnology firm Pfizer (PFE) and biopharmaceutical firm Spero Therapeutics (SPRO) have signed a regional licensing agreement for the latter’s polymyxin candidate SPR206, which is being developed to treat serious multi-drug resistant (MDR) Gram-negative infections.
Spero is a multi-asset pre-commercial stage biopharmaceutical company based in Massachusetts. It develops and sells novel treatments for bacterial infections and MDR. (See Pfizer stock chart on TipRanks)
As per the terms of the agreement, Pfizer has the right to develop, make and sell SPR206 in ex-Asia and ex-U.S. regions. It will pay a maximum of $80 million to Spero as sales and development milestone payments. Furthermore, Spero is eligible to receive royalties in high single-digit to low double-digit range on net sales of SPR206 in these territories.
Two months ago, Morgan Stanley analyst David Risinger maintained a Hold rating on Pfizer but increased the price target to $42 (5.7% upside potential) from $38. The analyst expects “significant declines (in COVID vaccines sales) beyond 2022 as the pandemic fades and competition likely increases”.
Overall, the stock has a Hold consensus rating based on 1 Buy, 9 Holds and 1 Sell. The average Pfizer price target of $43.22 implies 8.8% upside potential.
The company’s shares have gained 21.5% over the past year.
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