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Investing.com - Leerink Partners has lowered its price target on Shattuck Labs (NASDAQ:STTK) to $2.00 from $4.00 while maintaining an Outperform rating on the stock. The micro-cap biotech, currently valued at $40.24 million, has seen its shares decline 74% over the past year, though InvestingPro analysis suggests the stock is currently undervalued.
The adjustment follows Shattuck’s second-quarter 2025 earnings report and pipeline update, which included plans to initiate a Phase 1 trial for SL-325, a DR3 antagonist, in the current quarter.
Leerink Partners views the upcoming trial initiation as a "pivotal moment" for Shattuck’s turnaround as the company transitions to clinical-stage status, potentially generating new interest in its first-in-class DR3 approach for inflammatory bowel disease (IBD).
The company recently secured financing that extends its cash runway into 2029, providing long-term operational stability as it advances its pipeline.
Leerink Partners notes that initial pharmacokinetic/pharmacodynamic data, safety results, and biomarker information from the Phase 1 study will offer insights into the feasibility of Shattuck’s targeting approach, which may potentially deliver greater efficacy than TL1A inhibition alone.
In other recent news, Shattuck Labs announced a private placement financing expected to generate gross proceeds of approximately $103 million. This financing round was led by OrbiMed and included participation from both new and existing investors, such as Coastlands Capital, Prosight Capital, Adage Capital, Redmile Group, and NextBio Capital. The funds are earmarked to support the development of SL-325, a DR3 blocking antibody intended for the treatment of Crohn’s disease, ulcerative colitis, and other autoimmune and inflammatory diseases. Additionally, Shattuck Labs held its 2025 Annual Meeting of Stockholders, where all director nominees were elected, and the proposal to ratify the independent auditor was approved. The meeting had two main proposals and involved 47,903,215 shares of common stock eligible to vote. These developments indicate ongoing strategic and governance activities within the company.
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