Shattuck Labs, Inc. (NASDAQ:STTK), a biotechnology company with a market capitalization of $61.6 million, recently reported a series of stock transactions involving Redmile Group, LLC, a significant shareholder. On December 4, 2024, Redmile Group executed a sale of 133,371 shares of Shattuck Labs’ common stock at a price of $1.25 per share, totaling approximately $166,713. According to InvestingPro data, the stock has shown significant volatility, with the price falling over 82% in the past six months.
In addition to the sales, Redmile also acquired an equivalent number of shares on the same day, maintaining their overall ownership level. These transactions were part of cross trades conducted by private investment vehicles managed by Redmile.
The reported transactions resulted in no profit to Redmile or Jeremy Green, the principal of Redmile, due to the simultaneous nature of the buys and sells at the same price. Following these transactions, Redmile holds 5,409,353 shares indirectly, as noted in the filing.
In other recent news, Shattuck Labs has experienced significant changes in its research and development focus. The biotechnology company has decided to discontinue its SL-172154 drug for hematologic malignancies, despite some incremental benefits in overall response rate and median overall survival. The decision came after reviewing its pipeline, and the firm will now reallocate resources to an autoimmune-focused pipeline. This strategic shift has led H.C. Wainwright to downgrade the company’s stock from Buy to Neutral.
Shattuck Labs also terminated a collaboration agreement with Ono Pharmaceutical (TADAWUL:) Co., which will not affect the development of SL-325. Analysts from TD Cowen and H.C. Wainwright have reiterated their Buy ratings on Shattuck Labs, signaling confidence in the company’s long-term prospects despite the recent program cessation. However, BTIG analysts maintained a Neutral rating, emphasizing the need for randomized trial data.
The company’s SL-172154 had previously received an orphan drug designation from the U.S. Food and Drug Administration, potentially accelerating the drug’s development. Shattuck Labs is now planning to file an Investigational New Drug application for SL-325, an anti-DR3 monoclonal antibody, in the third quarter of 2025. This strategic pivot is expected to extend the company’s cash runway into 2027.
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