SAB Biotherapeutics Inc (NASDAQ:SABS) saw its stock surge by 33% following the announcement of a $175 million private placement backed by a mix of strategic and institutional investors.
The oversubscribed financing round was led by pharmaceutical giant Sanofi (NASDAQ:SNY) and joined by new investors such as RA Capital Management, Commodore Capital, Vivo Capital, and Blackstone’s (NYSE:BX) Multi-Asset Investing division. Existing backers including Sessa Capital, the T1D Fund, and ATW Partners also participated in the round.
SAB intends to allocate the funds to support its Phase 2b SAFEGUARD trial of SAB-142, a treatment aimed at slowing the progression of type 1 diabetes in patients recently diagnosed with the autoimmune disease. The new capital is projected to extend the company’s funding runway through mid-2028.
As part of the agreement, SAB will issue up to 1,000,000 shares of Series B nonvoting convertible preferred stock, which can be converted into as many as 100,000,000 shares of common stock at a conversion rate of $1.75 per share. The company will also distribute warrants tied to the deal that could raise an additional $284 million in gross proceeds if fully exercised.
The transaction is slated to close on or around July 22, 2025, pending standard closing requirements. Leerink Partners is acting as the lead placement agent, with UBS Investment Bank, Chardan, and Oppenheimer & Co. serving as joint agents.
SAB Biotherapeutics is advancing a proprietary immunotherapy platform targeting autoimmune conditions, with a focus on developing human anti-thymocyte immunoglobulin (hIgG) for the treatment of type 1 diabetes.
SAB Biotherapeutics stock price
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