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SAB Biotherapeutics, Inc. (SABS)·Q4 2023 Earnings Summary

Executive Summary

  • SAB Biotherapeutics pivoted to autoimmune T1D with SAB-142, initiated Phase 1 in November 2023, and closed financing for up to $110M; cash and equivalents were $56.6M at year-end, with runway into 2026 assuming Tranche B exercise .
  • FY 2023 revenue fell 90.6% to $2.24M due to prior DoD JPEO contract termination; net loss widened to $42.2M, driven by higher G&A and warrant fair value change .
  • Q4 specific figures were not itemized in the press release; using reported FY and 9M data, Q4 revenue was ~$0.31M and Q4 net loss ~$22.86M (derived from filings) .
  • Key catalysts: Phase 1 SAB-142 data expected by end of 2024, continued board/CFO buildout, and warrant exercise dynamics influencing liquidity runway .

What Went Well and What Went Wrong

  • What Went Well
    • Strategic pivot to SAB-142 with clear T1D focus; first patient dosed in Phase 1 in Nov 2023 .
    • Financing for up to $110M from specialist investors; management expects cash to fund operations into 2026 with Tranche B exercise .
    • CEO underscored mission and investor alignment: “we significantly changed the direction of our company to focus on SAB-142...” and remain “on track to provide Phase 1 data…by the end of 2024” .
  • What Went Wrong
    • Revenue collapsed post-JPEO termination; FY 2023 revenue $2.24M vs $23.90M in 2022 (−90.6%) .
    • Net loss widened to $42.2M in 2023; G&A rose to $23.8M (+45%) while R&D fell to $16.5M (−55%) .
    • Internal controls: disclosure controls deemed ineffective; material weaknesses identified and remediation ongoing through 2023/2024 .

Financial Results

Revenue and EPS

MetricQ1 2023Q2 2023Q3 2023Q4 2023 (derived)FY 2023
Revenue ($USD Millions)$0.581 $0.086 $1.267 ~$0.305 (FY − 9M) $2.239
Basic/Diluted EPS ($)$(0.15) $(0.14) $(0.10) N/AN/A

Profitability and OpEx

MetricQ1 2023Q2 2023Q3 2023FY 2023
Net Loss ($USD Millions)$(7.354) $(6.881) $(5.102) $(42.194)
R&D Expense ($USD Millions)$4.536 $3.662 $4.020 $16.515
G&A Expense ($USD Millions)$3.447 $2.900 $2.571 $23.799

Liquidity

MetricQ1 2023Q2 2023Q3 2023FY 2023
Cash & Equivalents ($USD Millions)$13.06 $7.77 $2.43 $56.60

Notes:

  • Q4 revenue derived as FY minus 9M reported in Q3 10-Q; Q4 net loss similarly derivable but EPS not disclosed separately .
  • No segment disclosures; margins not provided in filings.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash runwayThrough 2026Not providedCash and equivalents, with exercise of Tranche B warrants, expected to fund operations into 2026 Initiated runway visibility

Earnings Call Themes & Trends

No earnings call transcript available for Q4 2023 in the document set.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2023)Trend
Revenue/JPEO contractSharp decline after DoD JPEO termination; closeout revenues only Full-year revenue reflects post-termination environment Stabilized at low base
R&D executionSAB-176 Fast Track and Breakthrough announced Apr 2023; ongoing programs SAB-142 Phase 1 initiated Nov 2023; Phase 1 data expected end-2024 Progressing in T1D
Financing/LiquidityShelf filed May 2023; insurance financing; going concern risk earlier in year Up to $110M financing closed; runway into 2026 with Tranche B Significantly improved
Controls & governanceDisclosure controls ineffective; remediation initiated Controls still not effective as of FY; remediation ongoing Remediation in progress

Management Commentary

  • “During 2023, we significantly changed the direction of our company to focus on SAB-142... We remain on track to provide Phase 1 data for SAB-142 by the end of 2024.” — Samuel J. Reich, Chairman & CEO .
  • Highlights included initiation of the SAB-142 Phase 1 trial in autoimmune disorders (including T1D), closing equity financing for up to $110M, and board/CFO appointments strengthening governance and investor engagement .

Q&A Highlights

Not available; no Q4 2023 earnings call transcript found in the document set.

Estimates Context

Wall Street consensus EPS and revenue estimates via S&P Global were not retrievable due to data access limits at time of query. As a result, estimate comparisons are unavailable.

Key Takeaways for Investors

  • The T1D pivot is now operational: Phase 1 SAB-142 has begun, with Phase 1 readout targeted by end-2024; monitor timing and safety/POBA outcomes as key catalysts .
  • Liquidity risk mitigated: Up to $110M financing and cash of $56.6M at year-end underpin runway into 2026, contingent on Tranche B warrant exercise—track warrant exercise timing and conditions .
  • Revenue reset: With JPEO terminated, revenue has normalized at a low base; valuation will hinge on clinical milestones and financing rather than near-term sales .
  • OpEx mix shift: R&D declined materially YoY while G&A increased; watch cost discipline and allocation as SAB-142 advances into later stages .
  • Controls remediation: Disclosure controls were ineffective through FY; remediation is ongoing—improved governance should reduce execution risk over time .
  • Near-term trading catalysts: Any updates on Phase 1 enrollment/biological activity, financing warrant exercises, and corporate partnership developments could move the stock .
  • Medium-term thesis: If SAB-142 confirms anticipated safety and mechanism advantages vs rATG and positions competitively vs Tzield, SAB could unlock a differentiated disease-modifying T1D profile with annual redosing potential .

Sources: Company press release and SEC filings cited per cell and statement above.