Oppenheimer sets $12 target on SAB Biotherapeutics shares By Investing.com

On Tuesday, Oppenheimer initiated coverage on SAB Biotherapeutics (NASDAQ:SABS) with an Outperform rating and a price target of $12.00. The firm anticipates that the upcoming safety readout next quarter for SAB Biotherapeutics’ anti-thymocyte globulin SAB-142 will significantly reduce development risks. This is due to the clinical efficacy precedents set by an earlier, less sophisticated animal-derived analog.

The analyst from Oppenheimer indicated that SAB-142 is positioned as a leading therapy for delaying the onset and progression of type 1 diabetes. The recent approval of a monoclonal antibody for the same indication has clarified the regulatory pathway and suggests a substantial market opportunity. This context is further supported by Sanofi (NASDAQ:)’s acquisition of a similar asset last year.

SAB Biotherapeutics’ SAB-142 is expected to offer advantages over existing treatments, including greater potency, more convenient dosing, and the potential for a broader treatment label. The company’s platform, which is based on transgenic cattle, has been clinically validated through seven trials across three other in-house candidates. SAB-142 has been prioritized among these due to its promising profile.

The firm also notes that the fourth quarter’s data release for SAB-142 could serve as a catalyst for the stock. The safety readout is a critical step in the development process that could lead to further advancements in the treatment’s clinical trials and closer proximity to market release.

In other recent news, SAB Biotherapeutics, now rebranded as SAB BIO, has seen significant developments. At their annual stockholders meeting, all proposed items were approved, including the re-election of directors and an amendment to the company’s equity incentive plan. The company has also undertaken a rebranding initiative aligning with their focus on developing treatments for type 1 diabetes (T1D).

SAB BIO’s lead asset, SAB-142, has received FDA clearance, enabling the start of a Phase 1 clinical trial. Changes in the company’s leadership include the departure of CFO Michael King and the appointment of Mark Conley as acting CFO. Dr. Jay Skyler, a renowned T1D expert, has also joined the company’s Board of Directors.

Analysts from H.C. Wainwright and Brookline Capital Markets have maintained a Buy rating for SAB BIO, with H.C. Wainwright revising its full-year 2024 earnings per share (EPS) estimate to a loss of $4.90. These are the recent developments at SAB BIO, which continues to make strides in its clinical program for T1D therapy.

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