Shattuck Labs' stock craters as biotech scraps main product candidate after failed trial

By Ciara Linnane

Stock is on track for biggest-ever one-day price decline and matches its record low

Shattuck Labs Inc.'s stock fell 43% Tuesday to put it on track for its biggest-ever one-day percentage decline, after the biotech said it's scrapping its main product candidate after a failed trial.

The stock hit a low of $1.37 earlier in the session, matching its record closing low that was set in October 2023.

Austin, Texas-based Shattuck Labs (STTK) said it would cut 40% of its staff as it restructures and focuses on SL-325, a treatment for inflammatory bowel disease that is still in the early stages of development.

Adding to the gloom, the company said a potentially promising license agreement with Japan's Ono Pharmaceutical Co. (JP:4528) has also been terminated.

"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," Chief Executive Taylor Schreiber said in prepared remarks.

AML stands for acute myeloid leukemia, while HR-MDS refers to higher-risk myelodysplastic syndromes.

Shattuck Labs went public on Oct. 9, 2020, with some fanfare, soaring 30% in its debut amid high hopes for its cancer treatments. The deal priced at $17 and peaked at a high of $60.52 on Dec. 24 of that year.

The stock is down 72% in the year to date, while the SPDR S&P Biotech exchange-traded fund XBI has gained 8.8% and the iShares Biotechnology ETF IBB has gained 6.3%. The S&P 500 SPX has gained 19% in the same time frame.

-Ciara Linnane

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10-01-24 1223ET

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