Sioux Falls Company Creating COVID-19 Treatment Hopes To Go Public With Merger
A Sioux Falls-based company plans to go public by merging with a Florida company that it says will raise its enterprise value to $325 million.
SAB Biotherapeutics gained attention earlier this year for using cattle to produce human antibodies that treat COVID-19. It received more than $100 million from the federal government for that research.
SAB is also developing therapies for cancer and autoimmune disorders such as diabetes.
The company now plans to merge with Big Cypress Acquisition Corporation. The corporation is a special purpose acquisition company – or SPAC – that specializes in biopharmacy firms.
A SPAC is a company that raises money to buy other companies. The merger will allow SAB to go public and access capital.
CEO Eddie Sullivan said the move will help fund SAB’s development programs and clinical trials through 20-22.
“I think we’re all aware how much time it can often take to get products to the market in this particular industry of biopharmaceutical development,” Sullivan said. “But at each stage of the way you have to be able to finance those development programs in a way that you can move forward and be able to collect that clinical data that is needed for the FDA to determine their decision on being able to commercialize a pharmaceutical.”
The merger will go forward if the companies gain approval from the SEC and their boards of directors.