SAB Biotherapeutics stock maintains Buy rating at H.C. Wainwright on positive diabetes treatment data

Investing.com - H.C. Wainwright has reiterated its Buy rating and $9.00 price target on SAB Biotherapeutics (NASDAQ:SABS), currently trading at $2.47, following positive developments for the company’s SAB-142 treatment presented at the European Association for the Study of Diabetes symposium last week. The stock has shown strong momentum with a 17.62% gain over the past week, according to InvestingPro data.

The company presented preclinical and Phase 1 data for SAB-142, its fully-human anti-thymocyte IgG, which is being developed as a potential treatment for preventing new-onset Stage 3 Type 1 Diabetes. The data highlighted SAB-142’s multi-specific mechanism of action that promotes sustained, islet cell-preserving immunomodulation from its Phase 1 study in healthy volunteers and T1D patients.

SAB-142 has demonstrated a dose-proportional and reproducible pharmacokinetic profile with no differences between healthy volunteers and T1D patients, offering a short PK profile with sustained immunomodulatory effects extending to 120 days. These findings support the treatment’s potential, especially after results from the INNODIA-sponsored MELD-ATG study confirmed the disease-modifying potential of rabbit antithymocyte globulins in Stage 3 T1D.

The Phase 2 MELD-ATG study showed that patients treated with the minimum effective low dose of rabbit antithymocyte globulins maintained C-peptide production at 12 months while experiencing improvements in metabolic markers, with statistically significant improvements for HbA1c versus placebo.

SAB Biotherapeutics plans to advance SAB-142 through partnerships with the Australasian T1D Immunotherapy Collaborative and INNODIA, with the Phase 2b SAFEGUARD trial now initiating, which H.C. Wainwright views as strategically favorable for increasing patient enrollment. With a market capitalization of $25.72 million, the company faces some financial challenges. InvestingPro analysis reveals 13 additional key insights about SABS’s financial health and market position, which could be crucial for investors following this development stage biotech company.

In other recent news, SAB Biotherapeutics has secured a significant $175 million oversubscribed private placement, with participation from strategic investor Sanofi and several institutional investors. This financing deal also includes milestone-based warrants potentially worth an additional $284 million if fully exercised. Oppenheimer responded to this development by raising its price target for SAB Biotherapeutics to $14 from $12, maintaining an Outperform rating on the stock. Meanwhile, Chardan Capital Markets adjusted its price target to $12 from $20, though it still maintains a Buy rating. H.C. Wainwright also lowered its price target to $9 from $10, while retaining a Buy rating, ahead of the company’s second-quarter 2025 earnings report. SAB Biotherapeutics ended the previous quarter with $5.7 million in cash and equivalents, down from $20.8 million at the end of 2024. These recent developments highlight the company’s ongoing strategic financial maneuvers and analyst evaluations.

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