H.C. Wainwright holds Shattuck Labs stock at Neutral

On Monday, H.C. Wainwright reaffirmed a Neutral rating on Shattuck Labs (NASDAQ: STTK) after the company released its fourth-quarter and full-year 2024 financial results. The biotechnology firm reported a fourth-quarter earnings per share (EPS) of ($0.37) and an annual EPS of ($1.49), surpassing both the firm’s and the consensus estimates, which were ($0.46) and ($1.54), and ($0.32) and ($1.78), respectively. According to InvestingPro data, the company’s stock has experienced significant pressure, declining over 87% in the past year, with its market capitalization now standing at approximately $55 million.

Shattuck Labs concluded 2024 with $73 million in cash reserves, a sum that management anticipates will fund all current operations into 2027. This projection extends beyond the expected results from the Phase 1 clinical trial of its lead asset, SL-325. InvestingPro analysis reveals that while the company holds more cash than debt on its balance sheet, it is quickly burning through its reserves. With a current ratio of 8.88, the company maintains strong short-term liquidity. Throughout the past year, Shattuck Labs has strategically reorganized its pipeline, now emphasizing the preclinical development of SL-325, a novel antibody aimed at treating inflammatory bowel disease (IBD).

IBD, characterized by severe inflammation of the gastrointestinal tract, encompasses conditions such as ulcerative colitis (UC) and Crohn’s disease (CD). SL-325 is designed to inhibit death-domain receptor 3 (DR3), and the company has so far established a promising preclinical profile for the asset. Shattuck Labs plans to submit an Investigational New Drug (IND) application for SL-325 in the third quarter of 2025.

The planned Phase 1 study will assess the safety, tolerability, and pharmacokinetics (PK) of SL-325 in healthy volunteers. It will also establish the recommended dosage and dosing schedule for Phase 2 trials. Shattuck Labs expects to complete enrollment for this study by the second quarter of 2026. The company’s focus on advancing SL-325 reflects its commitment to addressing the unmet medical needs of IBD patients.

In other recent news, Shattuck Labs has reported promising preclinical results for its drug candidate SL-325, which is aimed at treating inflammatory bowel disease (IBD). The study, conducted on non-human primates, demonstrated no evidence of toxicity or organ dysfunction, supporting the upcoming Phase 1 clinical trials. The company plans to file an Investigational New Drug (IND) application in the third quarter of 2025, with the trials expected to begin later that year. Leerink Partners has initiated coverage on Shattuck Labs with an Outperform rating and a price target of $4.00, citing the company’s novel approach to IBD treatment as a potentially undervalued venture. The firm is optimistic about the potential success of SL-325, highlighting its unique mechanism and encouraging preclinical data. Shattuck Labs also announced that their financial resources, which include $90.1 million in cash and cash equivalents, are expected to support operations into 2027. The company is gearing up for significant milestones in 2025, including presenting findings at notable medical conferences and nominating lead DR3 bispecific development candidates. These developments reflect Shattuck Labs’ strategic focus on the DR3/TL1A pathway and its potential impact on the IBD treatment landscape.

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