SAB Biotherapeutics Soars 22%: What’s Fueling the Surge Before the 52-Week High?

Summary
• SABS surges 22.34% to $2.30, hitting an intraday high of $2.31 amid biotech sector volatility
• Sanofi’s $750M oncology deal with GILD and gene therapy fast-track designations dominate sector headlines
• RSI at 31.82 signals oversold conditions, while Bollinger Bands tighten around $2.46 support

Today’s 22.3% spike in SAB Biotherapeutics (SABS) has sent shockwaves through the biotech sector, driven by a confluence of Sanofi’s aggressive R&D moves and broader market rotation into undervalued biotech names. With the stock trading near its 52-week high of $6.60, the question looms: Is this a fleeting rebound or a catalyst for a multi-month rally?

Sanofi’s Acquisition Spree and Gene Therapy Momentum Ignite Biotech Optimism
SABS’s explosive move follows Sanofi’s $129/share acquisition of Blueprint Medicines and its FDA fast-track designation for SAR446597, a gene therapy for geographic atrophy. While SABS itself lacks direct ties to these deals, the broader biotech sector is rallying on renewed confidence in therapeutic innovation. Sanofi’s $20B U.S. manufacturing expansion and Thermo Fisher partnership have also lifted sentiment, with analysts noting that 'large pharma’s insatiable appetite for cutting-edge biotech assets is fueling a sector-wide re-rating.'

Biotech ETFs and Technicals Signal a High-Velocity Trade Setup
• 200-day MA: 2.41 (above) | RSI: 31.82 (oversold) | MACD: 0.06 (bullish divergence)
• Bollinger Bands: Upper $3.06 | Middle $2.46 | Lower $1.86 (critical support)
• Kline pattern: Short-term bearish but long-term rangebound
The technicals point to a potential reversal after a 31.82 RSI oversold reading and MACD divergence. Key levels to monitor include the 200-day MA at $2.41 and Bollinger Band middle at $2.46. While no options chain exists, a 5% upside scenario from $2.299 would see SABS at $2.41, aligning with its 200-day average. Aggressive traders could consider a bullish breakout above $2.46, which would validate a 38.2% Fibonacci retracement target of $2.94.

Backtest SAB Biotherapeutics Stock Performance
The backtest of the South African Revenue Service (SARS) performance after a 22% intraday surge shows mixed results. While the 3-Day win rate is 41.37%, the 10-Day win rate is 42.32%, and the 30-Day win rate is 43.03%, indicating a higher probability of positive returns in the short term, the actual returns over these periods are negative, with a maximum return of only 0.08% over 30 days. This suggests that while there is a good chance of a positive rebound in the immediate aftermath of the surge, the overall performance remains lackluster in the medium to long term.

Biotech’s Resurgence: Time to Buy the Dip or Sell the Euphoria?
The 22.3% surge in SABS reflects broader optimism in the biotech sector, fueled by Sanofi’s $750M GILD deal and gene therapy breakthroughs. While the 31.82 RSI and MACD divergence suggest a potential short-term rebound, the 200-day MA at $2.41 and Bollinger Band middle at $2.46 remain critical. Sector leader Amgen (AMGN) rose 0.78% today, signaling a positive backdrop. Investors should watch for a sustained break above $2.46 or a rejection below $1.86 to confirm the move’s legitimacy. For now, the 52-week high of $6.60 remains a distant target, but the path is clear for aggressive longs to capitalize on this biotech renaissance.