Spero Therapeutics Appoints Esther Rajavelu as President and Chief Executive Officer

Rhea-AI Summary

Spero Therapeutics has appointed Esther Rajavelu as permanent President and Chief Executive Officer, effective May 2, 2025. Rajavelu, who has been serving as Interim CEO since January 2025, will continue her role as Chief Financial Officer and Treasurer while also being nominated to the Board of Directors.

Key highlights:

• Rajavelu has been with Spero since November 2023, serving as CFO, Treasurer, and Chief Business Officer
• She succeeds Sath Shukla, who will step down from both CEO position and Board membership on May 2, 2025
• The company is preparing for an update on their PIVOT-PO Phase 3 trial for tebipenem HBr this quarter
• Board Chairman Frank Thomas praised Rajavelu's leadership and experience in biopharma financing

This leadership transition comes at a crucial time as Spero Therapeutics, a clinical-stage biopharma company, continues its focus on rare diseases and multi-drug resistant bacterial infections, with the tebipenem HBr program being their highest priority.

Positive

• Esther Rajavelu promoted from Interim to permanent CEO, maintaining continuity in leadership
• Existing partnership with GSK for tebipenem HBr development remains active
• Phase 3 PIVOT-PO trial update for tebipenem HBr expected this quarter
• Rajavelu brings valuable experience in biopharma financing and strategic initiatives

Negative

• Departure of previous CEO Sath Shukla and his resignation from Board of Directors
• CEO will hold multiple roles (President, CEO, CFO, and Treasurer) which could impact focus and effectiveness
• Company still in clinical-stage without approved products

CAMBRIDGE, Mass., April 28, 2025 (GLOBE NEWSWIRE) -- Spero Therapeutics, Inc. (Nasdaq: SPRO), a clinical-stage biopharmaceutical company, focused on identifying and developing novel treatments for rare diseases and multi-drug resistant (MDR) bacterial infections, today announced that Esther Rajavelu will serve as its President and Chief Executive Officer, effective May 2, 2025, and will be nominated for election as a member of the Board of Directors at Spero’s 2025 annual meeting of stockholders. Since January 2025, Ms. Rajavelu has been serving as Spero’s Interim President and Chief Executive Officer, and has served as Chief Financial Officer, Treasurer, and Chief Business Officer since November 2023. She will continue to serve as the Company’s Chief Financial Officer and Treasurer.

“Esther has demonstrated great leadership during her time at Spero, particularly her focus on advancing Spero’s programs and strengthening our partnership with GSK. We look forward to her continued service both as our President and Chief Executive Officer and as a new member of our Board of Directors. Esther’s prior experience in biopharma financing and strategic initiatives will be vital to executing on Spero’s mission, and her judgement and business acumen will be equally important as we manage the Company to deliver value to our shareholders,” stated Frank Thomas, Chairman of the Board of Directors of Spero.

Ms. Rajavelu added, “I am grateful for the confidence the Board and my colleagues at Spero have placed in me. This is an important time at Spero as we prepare for an update on our PIVOT-PO Phase 3 trial for tebipenem HBr this quarter. The tebipenem HBr clinical program is our highest priority, and we remain focused on advancing the program, along with other key activities aimed at delivering value to our shareholders.”

Ms. Rajavelu will succeed Spero’s previous President and Chief Executive Officer, Sath Shukla. Spero and Mr. Shukla have mutually agreed to separate, effective May 2, 2025, and he will concurrently step down from Spero’s Board of Directors. Chairman Thomas stated, “The Board of Directors is grateful to Sath for his contributions to Spero over his many years of services, including bringing forward our partnership with GSK to pursue the approval of tebipenem HBr. We wish Sath every success in his future endeavors.”

About Spero Therapeutics
Spero Therapeutics, headquartered in Cambridge, Massachusetts, is a clinical-stage biopharmaceutical company focused on identifying and developing novel treatments for rare diseases and MDR bacterial infections with high unmet need. For more information, visit www.sperotherapeutics.com

Forward Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, statements regarding the timing, progress and results of Spero's preclinical studies, clinical trials and research and development programs; Spero's strategy, goals and anticipated financial performance, milestones, business plans and focus; and Spero’s cash runway. In some cases, forward-looking statements may be identified by terms such as "may," "will," "should," "expect," "plan," "aim," "anticipate," "could," "intent," "target," "project," "contemplate," "believe," "estimate," "predict," "potential" or "continue," the negative of these terms or other similar expressions. Any forward-looking statements in this press release are based on management's current expectations and beliefs and are subject to a number of important risks, uncertainties and other factors that may cause actual results to differ materially from those indicated by such forward looking statements, including statements related to tebipenem HBr’s future clinical development process, taking into account the effects of possible regulatory delays, slower than anticipated patient enrollment, manufacturing challenges, clinical trial design and clinical outcomes; whether the results of such trials will warrant submission for approval from the U.S. Food and Drug Administration (FDA) or equivalent foreign regulatory agencies; whether the FDA will ultimately approve tebipenem HBr and, if so, the timing of any such approval; whether the FDA will require any additional clinical data or place labeling restrictions on the use of tebipenem HBr that would delay approval and/or reduce the commercial prospects of tebipenem HBr; whether a successful commercial launch can be achieved and market acceptance of tebipenem HBr can be established; whether results obtained in preclinical studies and clinical trials will be indicative of results obtained in future clinical trials; Spero's reliance on third parties to manufacture, develop, and commercialize its product candidates, if approved, including, in the case of tebipenem HBr, Spero's reliance on GSK pursuant to the Exclusive License Agreement to develop tebipenem HBr and GSK's right thereunder to determine, in its sole discretion, whether to continue the PIVOT-PO trial or otherwise further develop tebipenem HBr; Spero's need for additional funding; the ability to commercialize Spero's product candidates, if approved; Spero's ability to retain key personnel; Spero's leadership transitions; whether Spero's cash resources will be sufficient to fund its continuing operations for the periods and/or trials anticipated; and other factors discussed in the "Risk Factors" set forth in filings that Spero periodically makes with the SEC. The forward-looking statements included in this press release represent Spero's views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date. Except as required by law, Spero explicitly disclaims any obligation to update any forward-looking statements.

Investor Relations Contact:
Shai Biran, PhD
Spero Therapeutics
IR@Sperotherapeutics.com

Media Inquiries:
media@sperotherapeutics.com

FAQ

When will Esther Rajavelu start as permanent CEO of Spero Therapeutics (SPRO)?

Esther Rajavelu will begin as permanent President and CEO of Spero Therapeutics (SPRO) on May 2, 2025. She has been serving as Interim CEO since January 2025.

What is the key clinical trial update expected from Spero Therapeutics (SPRO) in Q2 2025?

Spero Therapeutics expects to provide an update on their PIVOT-PO Phase 3 trial for tebipenem HBr in Q2 2025. This trial represents the company's highest priority program.

What roles did Esther Rajavelu hold at Spero Therapeutics (SPRO) before becoming CEO?

Before becoming CEO, Esther Rajavelu served as Chief Financial Officer, Treasurer, and Chief Business Officer at Spero Therapeutics since November 2023, and as Interim President and CEO since January 2025.

Why is Sath Shukla leaving Spero Therapeutics (SPRO)?

Spero Therapeutics and Sath Shukla have mutually agreed to separate effective May 2, 2025. He will step down from both his position as President and CEO and from the Board of Directors.

What is the main focus of Spero Therapeutics (SPRO) drug development pipeline?

Spero Therapeutics focuses on developing novel treatments for rare diseases and multi-drug resistant (MDR) bacterial infections, with their tebipenem HBr program in partnership with GSK being their highest priority.