• SAB Biotherapeutics (NASDAQ: SABS) will discontinue its work with the U.S. Department of Defense (DoD) under a prototype research and development agreement.

• The agreement, awarded in 2019, underwent significant modifications due to the COVID-19 pandemic, and the government's evolving requirements no longer align with the agreement's goals as initially contemplated.

• As part of the closeout process, SAB and the DoD will negotiate comprehensively to address all open items under the agreement, which is expected to include a multi-million-dollar payment to SAB.

• Also Read: NIH Discontinues COVID-19 Phase 3 Trial Assessing SAB Biotherapeutics' SAB-185.

• The conclusion of SAB's agreement with the DoD will allow the company to focus on its core priorities and expand its current pipeline.

• SAB has advanced its preclinical program, SAB-195, a polyclonal antibody treatment for Clostridioides difficile Infection, a potentially terminal gastrointestinal infectious disease.

• SAB expects to file an IND within 18 months and announce topline results, including an indication of biological activity, from a Phase 1 trial in 2024.

• Price Action: SABS shares closed at $1.15 on Tuesday.

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