EXLUSIVE: SAB Biotherapeutics To Raise Up To $130M Via Preferred Equity To Advance Development Of Lead Diabetes Candidate

SAB Biotherapeutics SABS has entered into a securities purchase agreement with certain investors to issue and sell shares of preferred stock in a private placement of up to $130 million in gross proceeds.

The full proceeds, when funded, are expected to fund the company through 2026 and topline Phase 2 results.

The transaction is led by RA Capital Management, with participation from BVF Partners, Sessa Capital, Commodore Capital, RTW Investments, Marshall Wace, and the JDRF T1D Fund.

Also Read: EXCLUSIVE: SAB Biotherapeutics' Influenza Immunotherapy Shows Safety, Efficacy In Early-Stage Trials.

SAB will use the funds to clinically advance SAB-142, its lead therapeutic candidate for type 1 diabetes, which is expected to advance to clinical trials in Q4 2023. SAB-142 is a fully-human alternative to rabbit anti-thymocyte globulin (rATG). 

Two clinical trials have shown that a single, low dose of rATG has demonstrated the ability to modulate the body's immune response to help slow beta cell destruction and preserve the ability of these cells to generate insulin, which the body needs to regulate blood sugar and carry out all human activities. 

Price Action: SABS shares closed at $0.63 on Friday.