Shattuck Labs closes $103 million private placement led by OrbiMed

AUSTIN/DURHAM - Shattuck Labs, Inc. (NASDAQ:STTK), a biotechnology company developing therapeutics targeting tumor necrosis factor superfamily receptors, announced Tuesday the closing of a private placement of up to approximately $103 million led by investment firm OrbiMed. The announcement comes as the company’s stock trades near $0.99, having declined over 70% in the past year, though InvestingPro data shows a strong return over the last month.

The company said proceeds from the financing, assuming full exercise of common stock warrants, are expected to fund operations into 2029 and advance SL-325, its Death Receptor 3 (DR3) blocking antibody, through multiple clinical milestones, including placebo-controlled Phase 2 trials. According to InvestingPro analysis, this funding is crucial as the company has been quickly burning through cash, though it maintains more cash than debt on its balance sheet with a healthy current ratio of 10.25.

In connection with the financing, Shattuck appointed two new members to its Board of Directors: Daniel Baker, M.D., former Vice President of Immunology R&D at Johnson & Johnson, and Mona Ashiya, Ph.D., Member at OrbiMed. Four directors stepped down as part of this transition.

"Our recent clearance for the SL-325 IND, closing of the private placement, and Board additions mark an important repositioning of Shattuck as an immunology and inflammation focused organization," said Taylor Schreiber, Chief Executive Officer of Shattuck, according to the press release.

SL-325 is described as a potential first-in-class DR3 blocking antibody designed to achieve blockade of the DR3/TL1A pathway. The company plans to commence a Phase 1 clinical trial in healthy volunteers in the third quarter of 2025, with a focus on developing treatments for inflammatory bowel disease and potentially other autoimmune conditions.

The company’s statement indicates its preclinical studies show high affinity binding and activity that may offer advantages over antibodies targeting TL1A, the ligand for DR3.

Shattuck Labs maintains offices in Austin, Texas and Durham, North Carolina. While the company’s stock currently appears undervalued according to InvestingPro Fair Value calculations, investors should note that four analysts have revised their earnings upwards for the upcoming period. For deeper insights into STTK’s financial health and 8 additional ProTips, visit InvestingPro.

In other recent news, Shattuck Labs announced that the FDA has cleared its Investigational New Drug (IND) application for SL-325, allowing the company to proceed with a Phase 1 clinical study. This development is part of Shattuck’s focus on a potential first-in-class DR3 antagonist antibody for inflammatory bowel disease. Additionally, Shattuck Labs has secured up to $103 million through a private placement led by OrbiMed, with participation from several other investment groups. This financing aims to support the development of SL-325 for treating Crohn’s disease, ulcerative colitis, and other autoimmune conditions.

Leerink Partners has adjusted its price target for Shattuck Labs to $2.00 from $4.00, maintaining an Outperform rating following the company’s second-quarter 2025 earnings report and pipeline update. Meanwhile, H.C. Wainwright has reiterated its Neutral rating on the stock. In corporate governance news, 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. These developments reflect ongoing strategic and operational activities within the company.

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