Shattuck Labs Skyrockets 18.55%—What’s Fueling This Biotech Surge?

Summary
• Shattuck Labs (STTK) surges 18.55% intraday, trading at $1.02 after opening at $0.91
• Company submits IND application for SL-325, a first-in-class DR3-blocking antibody, with Phase 1 trial expected in Q3 2025
• Oversubscribed $103M private placement extends cash runway to 2029, bolstering investor confidence

Shattuck Labs (STTK) has ignited a dramatic 18.55% rally, surging from $0.91 to $1.02 in a single trading session. The move follows a pivotal IND submission for its lead candidate, SL-325, and a $103M capital raise that secures operations through 2029. With the stock trading near its 52-week high of $3.95, the market is betting on regulatory milestones and therapeutic innovation in the biotech sector.

IND Submission and Capital Raise Ignite Biotech Optimism
Shattuck’s explosive move stems from two catalysts: the submission of its IND application for SL-325, a first-in-class DR3-blocking antibody targeting inflammatory diseases, and a $103M private placement led by OrbiMed. The IND clearance, expected in Q3 2025, will unlock Phase 1 trials in healthy volunteers, while the capital raise ensures funding through 2029. These developments validate the company’s pipeline progress and financial stability, attracting speculative and institutional demand.

Biotech Sector Rally Gains Momentum as AMGN Leads
The biotech sector has rallied alongside STTK, with Amgen (AMGN) rising 1.52% intraday. While STTK’s surge is driven by clinical and capital milestones, AMGN’s gains reflect broader sector optimism amid favorable regulatory tailwinds. The sector’s momentum underscores investor appetite for innovation and capital efficiency, with STTK’s aggressive capital raise and clear trial timelines positioning it as a high-conviction play.

Technical Setup and ETF Alignment for Biotech Bulls
• 200-day average: 1.07 (above) • RSI: 50.92 (neutral) • Bollinger Bands: Price at 1.02 (above middle band of 0.8047) • MACD: -0.016 (bearish) • 30D support: 0.82–0.825 • 200D resistance: 1.227–1.250

STTK’s technicals present a high-risk, high-reward scenario. The stock has pierced above its 200-day average but faces a steep 22.5% gap to the 200D resistance. A breakout above $1.25 could trigger a retest of the 52-week high of $3.95, while a pullback to the 30D support at $0.82–0.825 may reignite short-term bullish momentum. The absence of listed options limits direct leverage, but biotech ETFs like XLB (XLB) or IBB (IBB) could mirror sector strength. Investors should monitor the 52-week high as a critical psychological threshold.

Backtest Shattuck Stock Performance
The backtest of STTK's performance after a 19% intraday surge shows mixed results. While the stock experienced a positive surge, the returns over various time frames were largely negative, with the maximum return being only 0.76% over 30 days. This suggests that the stock tended to underperform in the short to medium term following the initial surge.

Biotech Breakout: Time to Ride the Wave or Wait for Clarity?
Shattuck Labs’ 18.55% surge reflects a confluence of regulatory progress and capital confidence, but the stock’s long-term bearish trend and narrow options liquidity demand caution. The 52-week high of $3.95 remains a distant target, requiring sustained momentum and favorable Phase 1 data. For now, the biotech sector’s rally—led by AMGN’s 1.52% gain—offers a tailwind. Aggressive bulls may consider scaling into positions near the 30D support, while hedging against volatility. Watch for a $1.25 breakout or a breakdown below $0.87 (intraday low) to dictate next steps.