Why Is Shattuck Labs Stock Falling In Pre-market?

(RTTNews) - Shattuck Labs (STTK) announced a strategic pipeline prioritization to include the discontinuation of its clinical program, SL-172154. The company will turn its focus to SL-325, its DR3 antagonist antibody. Shattuck has implemented a restructuring plan to prioritize the development of the DR3 program. Approximately 40% of workforce will be impacted by the changes.

"We are disappointed that the promising complete remission rates we previously shared from our Phase 1 clinical trial did not translate to clinically meaningful improvements in median overall survival for TP53m AML and HR-MDS patients treated with SL-172154 in combination with azacitidine," said Taylor Schreiber, CEO.

The company believes its cash and cash equivalents and investments will be sufficient to fund its planned operations into 2027, beyond results from planned Phase 1 clinical trial of SL-325. As of June 30, 2024, cash and cash equivalents and investments were $105.3 million.

Shares of Shattuck Labs are down 50% in pre-market trade on Tuesday.

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