Shattuck Labs closes $103 million private placement, funds multiple clinical trials.

Shattuck Labs closed a private placement of up to $103 million, led by OrbiMed, with aggregate net proceeds expected to fund multiple Phase 2 clinical trials, including in Inflammatory Bowel Disease and another autoimmune disease. Pro forma cash and cash equivalents are expected to fund planned operations into 2029. Dan Baker, M.D., and Mona Ashiya, Ph.D., were appointed to the Board of Directors.

Shattuck Labs (NASDAQ: STTK) has announced the closing of a significant private placement of up to $103 million, led by OrbiMed. This funding, assuming full exercise of common stock warrants, is expected to support operations into 2029 and advance SL-325, their novel DR3 blocking antibody, through multiple Phase 2 clinical trials focusing on Inflammatory Bowel Disease (IBD) [1].

The company has also strengthened its Board of Directors with two key appointments: Dr. Daniel Baker, former VP of Immunology at Johnson & Johnson/Janssen, and Dr. Mona Ashiya, Member at OrbiMed. These appointments coincide with the departure of four existing board members, marking Shattuck's strategic repositioning as an immunology and inflammation-focused organization [1].

Shattuck's $103M raise provides substantial runway into 2029, strengthening their strategic pivot to immunology with SL-325 development. This $103 million private placement led by OrbiMed represents a significant capital infusion for Shattuck, transforming their financial outlook and development timeline. The funding specifically earmarks resources for advancing SL-325, their DR3 blocking antibody, through multiple Phase 2 clinical trials in inflammatory bowel disease and potentially other autoimmune indications [1].

The simultaneous board restructuring reinforces Shattuck's strategic pivot toward immunology and inflammation. The appointment of Dr. Daniel Baker brings valuable immunology expertise from his Janssen experience developing blockbuster therapies like Remicade, Simponi, and Stelara. This suggests the company is positioning SL-325 to potentially compete in markets where these established drugs operate. Dr. Mona Ashiya's addition cements OrbiMed's commitment as lead investor [1].

The company's repositioning around SL-325 as a "potentially first-in-class DR3 blocking antibody" indicates a strategic narrowing of focus toward inflammation and immunology, moving away from their earlier oncology programs. Management's claim of "superior efficacy and reduced immunogenicity relative to TL1A-blocking antibodies" positions SL-325 against emerging competitors in the inflammatory bowel disease space, where several TL1A inhibitors are currently in development [1].

The emergence of SL-325 as Shattuck's lead program represents an intriguing development in inflammatory disease therapeutics. As a DR3 blocking antibody, SL-325 takes a mechanistically distinct approach from the TL1A-blocking antibodies currently advancing through clinical trials at other companies. This differentiation is scientifically meaningful—by targeting the receptor rather than the ligand, SL-325 could potentially offer more complete pathway inhibition [1].

The appointment of Dr. Baker to the board brings valuable expertise from his involvement with Remicade (infliximab), which revolutionized IBD treatment by targeting TNF. The TNF superfamily, which includes both TNF and TL1A/DR3, has proven to be a fertile area for therapeutic development in inflammatory diseases. Dr. Baker's experience developing multiple successful immunology drugs at Janssen provides Shattuck with strategic guidance as they transition into clinical development [1].

The company's plan to conduct placebo-controlled, randomized Phase 2 trials suggests a rigorous clinical development approach, which will be essential in the increasingly competitive inflammatory bowel disease landscape. With SL-325 entering Phase 1 this quarter, Shattuck appears positioned to generate proof-of-concept data for this novel mechanism within their newly extended financial runway [1].

References:
[1] https://www.stocktitan.net/news/STTK/shattuck-labs-announces-closing-of-up-to-103-million-private-7d75gwgb2dg1.html