Q3 Shattuck Labs Comeback After AML Program Setback, Rallies Focus on Promising IBD Treatment
Shattuck Labs, Inc. (Nasdaq: STTK), a biotechnology company focused on developing novel therapeutics targeting tumor necrosis factor (TNF) superfamily receptors for cancer and chronic immune diseases, reported its third-quarter 2024 financial results and highlighted recent strategic developments. In October, Shattuck announced its decision to discontinue SL-172154, its only clinical-stage candidate, which was being developed for acute myeloid leukemia (AML) and higher-risk myelodysplastic syndromes (HR-MDS). This decision, aimed at prioritizing its pipeline, disappointed investors and led to a 45% drop in stock price.
Shattuck is now focusing its efforts on advancing SL-325, a first-in-class antagonist antibody targeting DR3, the receptor for TL1A. SL-325 has the potential to be a first-in-class treatment for Inflammatory Bowel Disease (IBD) and other inflammatory autoimmune diseases. Ongoing IND-enabling studies are assessing the safety, pharmacokinetics, and pharmacodynamics of SL-325, with an IND filing expected in the third quarter of 2025.
The company reported a cash balance of approximately $90 million as of September 30, 2024, projected to fund operations into 2027. Key financial highlights include reduced R&D expenses of $16.3 million for Q3 2024, down from $24.2 million in Q3 2023, and a net loss of $16.7 million for the quarter compared to $27.5 million in the prior year period.
Taylor Schreiber, M.D., Ph.D., CEO of Shattuck commented, “Last month we announced a strategic shift to focus on the development of SL-325, a first-in-class DR3 blocking antibody designed to achieve a more complete blockade of the clinically validated TL1A/DR3 signaling pathway. We are underway with IND-enabling, non-human primate studies to evaluate the safety, pharmacokinetic, and pharmacodynamic profile of SL-325. As of this month, we have substantively completed our restructuring plans to focus on the development of SL-325 and are well-positioned to fund our planned operations into 2027.”
Shattuck’s restructuring plan has been completed, positioning the company to efficiently advance the development of its DR3 program.
Shattuck plans to provide further updates and engage with the investor community during upcoming conferences in December 2024.
