Emergent BioSolutions Inc. (NYSE: EBS) announced a multi-year manufacturing agreement with SAB Biotherapeutics, Inc. (NASDAQ: SABS) valued at approximately $50 million to support development and production of SAB-142, a treatment candidate for autoimmune type 1 diabetes.

Under the agreement, $36 million of the contract value depends on future regulatory approval and downstream milestones. Emergent will provide process development, scale-up services, technology transfer, and manufacturing for SAB-142's clinical program and potential commercial production.

The manufacturing will take place at Emergent's Winnipeg, Manitoba facility, which will serve as the primary site for bulk process intermediate and drug product production. The facility specializes in plasma-derived and complex biologic manufacturing.

SAB-142 is currently being evaluated in newly diagnosed Stage 3 autoimmune type 1 diabetes patients in a Phase 2b clinical trial called SAFEGUARD. The treatment aims to delay onset and potentially prevent disease progression in type 1 diabetes patients.

"Emergent is pleased to leverage our specialized manufacturing capabilities to support the advancement of SAB-142," said Bill Hartzel, senior vice president of manufacturing and bioservices at Emergent BioSolutions.

SAB Biotherapeutics develops human immunoglobulin G treatments using genetically engineered cattle to produce targeted antibodies without requiring human donors or convalescent plasma. The company's technology platform aims to address immune and autoimmune disorders.

The information is based on a press release statement from the companies.