On Tuesday, Shattuck Labs, Inc. (NASDAQ:STTK) stock traded lower, with a session volume of 9.48 million versus the average volume of 328.32k. The company announced a strategic pipeline prioritization.

Shattuck will discontinue its clinical program, SL-172154, and focus on SL-325, its DR3 antagonist antibody. Shattuck Labs plans to initiate clinical development in patients with inflammatory bowel disease.

Approximately 40% of Shattuck’s workforce will be impacted by the changes. The company expects to complete the reduction in force in the fourth quarter of 2024.

The company says its cash and cash equivalents and investments will be sufficient to fund its planned operations into 2027.

Shattuck expects to file an investigational new drug for SL-325 in the third quarter of 2025. Topline Phase 1B SL-172154 trial in higher-risk myelodysplastic syndromes (HR-MDS) showed median overall survival of 15.6 months. The median survival for patients with TP53m HR-MDS is 10.6 months and will not improve beyond 13.1 months with subsequent data cuts.

Benchmark median overall survival of approximately 9–12 months for TP53m HR-MDS patients treated with Bristol Myers Squibb & Co’s (NYSE:BMS) Vidaza (azacitidine) alone.

In TP53m acute myeloid leukemia (AML) patients, median overall survival was 10.5 months and will not improve beyond 11.7 months with subsequent data cuts.

Benchmark median OS of approximately 5-8 months for TP53m AML patients treated with azacitidine alone.

The company said approval of SL-172154 in TP53m AML and HR-MDS would require meaningful improvement in OS in large-scale, randomized studies. The company saw only modest improvements in OS in its Phase 1 trial, and historically, some erosion in efficacy would be expected in larger, randomized trials.

“We are disappointed that the promising complete remission rates we previously shared from our Phase 1 clinical trial did not translate to clinically meaningful improvements in median overall survival for TP53m AML and HR-MDS patients treated with SL-172154 in combination with azacitidine,” said Taylor Schreiber, CEO of Shattuck.

Shattuck and Ono Pharmaceutical Co., Ltd. agreed to terminate the license agreement related to the preclinical development of certain compounds. 

Price Action: STTK stock is down 42.4% to $2.01 at the last check Tuesday.

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