Shattuck Labs Shutters Cancer Program, Lays Off Around 40% Of Its Workforce, Reorganizes Pipeline
Portfolio Pulse from Vandana Singh
Shattuck Labs (NASDAQ:STTK) is reorganizing its pipeline, discontinuing its SL-172154 cancer program, and laying off 40% of its workforce. The company will focus on developing SL-325 for inflammatory bowel disease. Despite the changes, Shattuck's cash reserves are expected to fund operations until 2027. The stock fell 42.4% following the announcement.
October 01, 2024 | 4:26 pm
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Shattuck Labs is discontinuing its SL-172154 cancer program and laying off 40% of its workforce, shifting focus to SL-325 for inflammatory bowel disease. The stock dropped 42.4% following the announcement.
The discontinuation of a major cancer program and significant workforce reduction are negative signals for investors, leading to a 42.4% drop in stock price. The shift in focus to a new drug indicates a strategic pivot, but the immediate impact is negative due to the layoffs and program discontinuation.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Shattuck Labs' SL-172154 showed modest improvements in survival rates compared to Bristol Myers Squibb's Vidaza in TP53m HR-MDS and AML patients. However, the improvements were not clinically meaningful.
While Shattuck's SL-172154 showed some improvement over BMS's Vidaza, the lack of clinically meaningful results means limited impact on BMS. The news is more relevant to Shattuck's performance.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 30