Jan 7, 2015 at 3:21 p.m
SIOUX FALLS, S.D.–The Sioux Falls Development Foundation is announcing a $3 million equity investment in Sioux Falls-based SAB Biotherapeutics to help grow its unique disease-fighting platform.
SAB Biotherapeutics, Inc. (SAB) is a biopharmaceutical company on the leading edge of innovation, developing natural technologies that have the potential to transform the treatment and prevention of diseases from cancer to Ebola, and diabetes to influenza. SAB’s technology, the DiversitAb Platform, is a natural system for producing clinical-grade fully human antibodies to treat human diseases.
“Biotherapeutics, along with a wide array of medical research and biotech industry expansion, has been a long-term target for our economic development program,” said Slater Barr, Sioux Falls Development Foundation President. “This project has the potential to be a win for SAB, the Development Foundation and the state of South Dakota. We’re excited to be invested in SAB’s growth.”
Nature has designed our bodies to produce antibodies to neutralize disease. SAB’s platform models nature to boost our antibody defenses. Antibody therapeutics is approaching a $100 billion global market with projected double-digit, near-term growth–and some of the most advanced international work in this field is being done in Sioux Falls, South Dakota, by SAB.
“This investment gives us the opportunity to pursue an aggressive five-year growth plan that can significantly alter our position in the marketplace,” said SAB President and CEO Dr. Eddie Sullivan. “The growth of our company also means job growth, subsidiary economic advantages and tax revenue for the Sioux Falls area and South Dakota.”
Growth plans for the company include antibody production facilities, purification and packaging facilities, research and development laboratory, and the SAB global headquarters and corporate operations. In full operation, SAB projects more than 200 direct jobs, with an estimated annual payroll of more than $16 million.
Those combined facilities would have a projected residential investment impact of $13.9 million and a commercial investment impact of $164.6 million. Based on future development of the company at full operation, annual property and sales tax revenue from additional production and processing facilities could bring an estimated $387,000 to the city and $1.4 million to the state annually.
The equity position in SAB has the potential to provide future funding for the Development Foundation to continue its work in developing available sites, aiding the expansion of existing Sioux Falls area companies and attracting new industry to the area.
The Development Foundation’s investment was facilitated by a State of South Dakota Future Fund grant intended to support and encourage development of the state’s biotechnology sector.
“SAB Biotherapeutics is a prime example of a home-grown industry that holds incredible potential for the state of South Dakota,” said Governor Dennis Daugaard. “This project will be a leap forward for SAB, and we believe could be the catalyst for attracting innovative biotechnology companies that want to work alongside SAB to the state.”
SAB Biotherapeutics is currently located in the Sanford Research Park. The Sioux Falls Development Foundation joins fellow Sioux Falls-based investor Sanford, which also holds an equity position in the biotherapeutics company.
