Investment firm WilmerHale provides guidance to RA Capital, serving as the primary backer, in a private financing round worth $175 million for biotech company SAB BIO.
In a significant development for the biotech industry, SAB BIO (Nasdaq: SABS) announced a $175 million private placement financing on July 21, 2025. This funding will support SAB BIO's clinical-stage biopharmaceutical company as it continues to develop therapies aimed at delaying the progression of Type 1 diabetes (T1D) in newly diagnosed autoimmune T1D patients.
The financing attracted a diverse group of investors, including the strategic investor Sanofi, as well as several prominent institutional investors such as RA Capital Management (the lead investor), Commodore Capital, Vivo Capital, Blackstone Multi-Asset Investing, Spruce Street Capital, Forge Life Science Partners, Woodline Partners LP, and existing investors Sessa Capital, the T1D Fund, and ATW Partners.
The private placement involved the issuance of 1,000,000 shares of Series B nonvoting convertible preferred stock at a conversion price of $1.75 per share. The securities purchase agreement also included warrants to purchase additional shares of the Company's Series B nonvoting convertible preferred stock for up to an additional $284 million if exercised fully. The proceeds from this financing are intended to fund the pivotal Phase 2b SAFEGUARD study of SAB-142 for delaying Type 1 Diabetes progression and extend the company's cash runway into mid-2028.
Legal representation for the private placement financing was provided by WilmerHale, with Chris Barnstable-Brown, Scott Lunin, and Frank Wang leading the team. The securities purchase agreement was not specified to include any advertisements or repeated information from earlier bullet points.
This oversubscribed securities purchase agreement marks a significant step forward for SAB BIO as it continues its mission to develop innovative therapies for T1D. With the support of its strategic and institutional investors, the company is well-positioned to advance its clinical-stage programme and bring hope to those affected by this debilitating disease.
- The significant step forward for SAB BIO in developing innovative therapies for Type 1 Diabetes (T1D) includes leveraging both finance and technology, as demonstrated by the $175 million private placement financing in technology-driven, biopharmaceutical advancements.
- RA Capital Management, the lead investor in SAB BIO's private placement financing, is a prominent institutional investor in the technology sector, underscoring the intersection of finance and technology in driving the development of new therapies for T1D.
