Spero Therapeutics, Inc. (SPRO) announced on Friday a restructuring within its leadership in response to receiving a Wells Notice from the Securities and Exchange Commission (SEC) regarding certain public disclosures made in 2022. As part of these changes, the company has appointed Esther Rajavelu as Interim Chief Executive Officer, temporarily replacing Sath Shukla, who has agreed to take a voluntary paid administrative leave.
Additionally, the Board has named Frank Thomas as its new Chairman, succeeding Ankit Mahadevia. Despite these alterations, both Shukla and Mahadevia will remain as members of the Board.
The Wells Notice pertains to disclosures the company made from March 31 leading up to its announcement on May 3, 2022, when it decided to halt the commercialization of Tebipenem HBr following feedback from the Food and Drug Administration. The SEC is investigating whether these disclosures may have breached federal securities laws.
Spero has reassured that both Mahadevia and Shukla are actively cooperating with the SEC, asserting that the firm's disclosures were appropriate.
