STTK Discontinues Cancer Program, Plans Workforce Cut, Stock Falls

Core Viewpoint - Shattuck Labs has decided to discontinue the development of its pipeline candidate SL172154 for acute myeloid leukemia (AML) and higher-risk myelodysplastic syndromes (HR-MDS) due to limited efficacy and strategic prioritization efforts, leading to a significant drop in stock price [1][4]. Pipeline and Clinical Development - SL172154 was the only clinical-stage candidate in Shattuck's pipeline, and its discontinuation disappointed investors [1]. - The Phase IB study of SL172154 combined with Bristol Myers' Vidaza/Onureg showed a median overall survival (OS) of 10.6 months for HR-MDS patients, which is not expected to improve significantly [2]. - In the AML arm, the combination treatment resulted in a median OS of 10.5 months, also not expected to improve significantly [3]. - The benchmark median OS for TP53 mutant HR-MDS patients treated with Vidaza/Onureg monotherapy is approximately 9-12 months, while for TP53 mutant AML patients, it is about five to eight months [2][3]. Financial and Strategic Implications - Shattuck's stock has plummeted 73.1% year-to-date, compared to a 1.2% decline in the industry [6]. - The company has terminated its collaboration deal with Ono Pharmaceutical, which may further limit its income potential [8][9]. - Following the discontinuation of SL172154, Shattuck has identified its preclinical candidate SL-325 as the lead for initial clinical development in inflammatory bowel disease, with plans to file an investigational new drug application by Q3 2025 [10][11]. - The company plans to reduce its workforce by about 40% to focus resources on SL-325 development [12]. - As of June 30, 2024, Shattuck had cash and cash equivalents of $105.3 million, which is expected to fund operations through 2027 [13].