Oct. 4, 2023

Sioux Falls-based SAB Biotherapeutics has secured a private placement offering that will provide up to $130 million to advance development of its new treatment for Type 1 diabetes.

SAB, which trades on the Nasdaq as SABS, is developing a therapeutic for Type 1 diabetes, SAB-142, that will leverage its unique immunotherapy platform. The hope is to delay the onset or progression of the chronic condition.

SAB-142 is moving toward human clinical trials potentially by later this year. The $130 million offering is expected to fund the company through 2026 and topline phase two clinical trial results.

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

“We’re pleased to have the support of this world-class syndicate of investors in the field of Type 1 diabetes,” Eddie Sullivan, co-founder, president and CEO of SAB, said in a statement. “This financing will enable us to advance SAB-142, our disease-modifying immune therapy with the potential for annual redosing to halt diabetes progression, into human trials in the coming months. Our mission is to help shift the T1D treatment paradigm from daily maintenance with devices and exogenous insulin to a disease-modifying approach that offers durable preservation of pancreatic function by addressing the root cause of T1D.”

By stopping immune cells from attacking beta cells, SAB’s treatment is designed to preserve insulin-producing beta cells. One current approach to treatment, which has shown effectiveness, uses an antibody derived from rabbits that causes most humans to develop serum sickness and anti-drug antibodies. Because SAB-142 is a human antibody, the intent is to allow safe, consistent redosing for T1D without the potential risk of inducing the major adverse immune reactions that can occur with administration of a fully animal ATG.

“The potential for SAB’s lead therapeutic candidate for T1D to utilize human IgG antibodies without the need for human donors to protect pancreatic cells from autoimmune attacks represents a significant shift in treatment options for people with diabetes,” said Dr. Steven St. Peter, managing director of the JDRF T1D Fund, a venture philanthropy fund focused on accelerating life-changing solutions to cure, prevent and treat Type 1 diabetes.

“We are pleased to partner with SAB’s strong leadership team and a diverse group of leading life sciences investors to thoughtfully advance this innovative and potentially groundbreaking lead therapy while supporting the company’s patient-centric mission.”