Shattuck Labs, Inc. (NASDAQ: STTK), a biotechnology company with a market capitalization of $61.6 million, recently announced a series of stock transactions involving Redmile Group, LLC, a significant shareholder. On December 4, 2024, Redmile Group completed a sale of 133,371 shares of Shattuck Labs common stock at a price of $1.25 per share, for a total of approximately $166,713. According to InvestPro According to the data, the stock has shown significant volatility, with the price falling more than 82% over the past six months.
In addition to the sales, Redmile also acquired an equivalent number of shares on the same day, thus maintaining their overall ownership level. These transactions were part of cross-trades led by private investment vehicles managed by Redmile.
The reported transactions did not generate any profit for Redmile or Jeremy Green, the executive of Redmile, due to the simultaneous nature of the purchases and sales at the same price. As a result of these transactions, Redmile indirectly holds 5,409,353 shares, as indicated in the filing.
Additionally, Shattuck Labs has experienced significant changes in its research and development directions. The biotechnology company has decided to discontinue its drug SL-172154 for the treatment of hematologic malignancies, despite some additional benefits in overall response rate and median overall survival. The decision was made after reviewing its pipeline, and the company will now reallocate its resources to a pipeline focused on autoimmune diseases. This strategic change led HC Wainwright to downgrade the company's shares from Buy to Neutral.
Shattuck Labs also ended a collaboration agreement with Ono Pharmaceutical (TADAWUL:) Co., which will not affect the development of the SL-325. Analysts at TD Cowen and HC Wainwright reiterated their Buy ratings on Shattuck Labs, signaling confidence in the company's long-term prospects despite the program's recent hiatus. However, BTIG analysts maintained a neutral rating, emphasizing the need for randomized trial data.
The company's SL-172154 had already received orphan drug designation from the U.S. Food and Drug Administration, which could accelerate the drug's development. Shattuck Labs now plans 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 flow through 2027.
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