|
Getting your Trinity Audio player ready...
|
If there is one stock that most investors are going to be looking into this morning then it is most likely going to be the Spero Therapeutics (NASDAQ:SPRO) stock. Following a major new announcement this morning, the Spero stock has been in the middle of a major rally and has already clocked gains of as much as 190% amidst heavy interest.
In this situation, it may be a good idea for investors to take a closer look at the actual announcement and then make their minds up about the stock. It emerged this morning that pharmaceutical behemoth GSK is on the verge of picking up a stake in Spero as part of a licensing deal. The licensing deal in question for an oral antibiotic, that is manufactured by Spero could also treat complex infections of the urinary tract.
As per the provisions of the agreement between the two parties, GSK would pay as much as $66 million straightaway. In addition to that, there are many milestone-related payments that Spero could receive in the future as well. On the other hand, GSK also made an investment of $9 million in Spero by picking up 7.45 million shares for around $1.20805 a share.
That being said, the agreement also notes that the overall stake of GSK and its affiliates is never going to be more than 19.99% in Spero. The rally in the stock has been quite dramatic this morning and it is going to be interesting to see if the momentum holds or not.