SAB BIO Reports Q3 2024 Financials and Company Update

SAB BIO has successfully completed Phase 1 enrollment for SAB-142 without any cases of serum sickness. The company anticipates releasing topline Phase 1 data by the end of the year. SAB BIO, a clinical-stage biopharmaceutical firm, is developing a novel immunotherapy platform aimed at preventing the onset or progression of type 1 diabetes (T1D) using human anti-thymocyte immunoglobulin (hIgG).

During the second quarter, which ended on September 30, 2024, SAB BIO reported its financial results. The company's chairman and CEO, Samuel J. Reich, highlighted the progress made in the SAB-142 program, moving from preclinical stages through Phase I, and positioning the company to begin Phase II trials in 2025. The completed Phase 1 study was shared at the European Association for the Study of Diabetes Annual Meeting on September 9, 2024. The update confirmed that all planned cohorts, including healthy volunteers and T1D patients, completed enrollment for Phase 1. The company's primary goal is to establish the safety, tolerability, pharmacokinetics, and immunogenicity profile of SAB-142 before commencing the Phase II SAFEGUARD study in patients with new-onset T1D.

From a financial perspective, SAB BIO outlined several key updates for the third quarter of 2024. The company expects to have sufficient funds to continue operations into 2026, assuming all outstanding Tranche B warrants are exercised. As of September 30, 2024, SAB BIO's cash, cash equivalents, and available-for-sale securities totaled $30.4 million, a decrease from $56.6 million as of December 31, 2023. This reduction resulted largely from ongoing research and development expenses.

Research and development (R&D) expenses for the three months ended September 30, 2024, increased to $7.8 million from $4.0 million in the same period in 2023. For the nine months ended September 30, 2024, R&D expenses rose to $22.6 million compared to $12.2 million for the corresponding period in 2023, primarily due to focusing on the SAB-142 program. General and administrative (G&A) expenses also saw an increase, reaching $3.5 million for the three months ended September 30, 2024, compared to $2.6 million for the same period in 2023. For the nine months ended September 30, 2024, G&A expenses were $11.5 million, up from $8.9 million in the previous year. This increase was mainly attributed to the growing headcount needed to support the company's continued research and product development.

Non-operating income significantly improved, amounting to $1.0 million for the three months ended September 30, 2024, compared to $0.2 million during the same period in 2023. For the nine months ended September 30, 2024, non-operating income was $10.2 million, a considerable increase from a $0.1 million expense in the same period in 2023. This rise was mainly due to changes in the fair value of warrant liabilities and an Australian research and development tax credit.

Despite these financial activities, SAB BIO reported a net loss of $10.3 million for the three months ended September 30, 2024, compared to a net loss of $5.1 million for the same period in 2023. For the nine months ended September 30, 2024, the net loss was $22.7 million, compared to $19.3 million in the same period the previous year.

SAB BIO is dedicated to developing human, multi-targeted, high-potency immunoglobulins (IgGs) to treat and prevent immune and autoimmune disorders, without the need for human donors or convalescent plasma. Their lead product, SAB-142, aims to delay the onset or progression of T1D, potentially transforming treatment paradigms. Leveraging advanced genetic engineering and antibody science, SAB BIO uses Transchromosomic (Tc) Bovine™ to produce a diverse array of targeted, high-potency human IgGs, addressing a wide range of serious unmet needs in human diseases.