STTK

Shattuck Labs, Inc. (STTK) - 10-K Summary

Business Context and Reporting Period

Company: Shattuck Labs, Inc.
Filing Type: Annual Report on Form 10-K
Period Ended: December 31, 2025
Business Overview: Shattuck Labs is a clinical-stage biotechnology company developing first-in-class monoclonal and bispecific Death Receptor 3 (DR3) blocking antibodies for inflammatory and immune-mediated diseases. The company's lead program, SL-325, targets the DR3/TL1A pathway for the treatment of Inflammatory Bowel Disease (IBD), specifically Crohn's Disease (CD) and Ulcerative Colitis (UC). The company is currently conducting a Phase 1 clinical trial for SL-325 in healthy volunteers.

Key Financial Metrics

Note: Revenue in 2025 consisted entirely of $1.0 million in related party license revenue from Kayak Therapeutics. Revenue in 2024 was derived from collaboration agreements with Ono Pharmaceutical and ImmunoGen.

Material Changes vs. Prior Period

• Revenue Decline: Total revenue decreased by 82.5% (from $5.7 million to $1.0 million) due to the completion of obligations under the Ono and ImmunoGen collaboration agreements in 2024. The 2025 revenue was a one-time license fee from Kayak Therapeutics.
• Reduced Net Loss: Net loss improved by 35.3% (from $75.4 million to $48.8 million), primarily driven by a 47.5% reduction in R&D expenses.
• R&D Restructuring: R&D expenses dropped significantly due to the discontinuation of the SL-172154 program in October 2024, which saved approximately $31.5 million in costs. This was partially offset by a $6.2 million increase in SL-325 expenses as it advanced into clinical development.
• Capital Raising: In August 2025, the company raised $45.7 million through a private placement of common stock, pre-funded warrants, and common stock warrants. In January 2026, the company sold $21.4 million of common stock via an At-The-Market (ATM) facility and exercised warrants for $5.3 million.

Guidance, Outlook, and Risks

• Clinical Outlook: The company expects to complete enrollment in the Phase 1 clinical trial for SL-325 in the second quarter of 2026. A Phase 2 clinical trial in Crohn's Disease patients is expected to initiate in the third quarter of 2026.
• Liquidity: Management believes that existing cash, cash equivalents, and short-term investments ($78.1 million as of Dec 31, 2025), assuming full exercise of outstanding warrants, will fund operations into 2029.
• Key Risks:
  • Development Risk: The company is heavily dependent on the success of SL-325. Clinical trials may fail to demonstrate safety or efficacy.
  • Capital Requirements: The company has never been profitable and expects to incur significant losses for the foreseeable future. Additional funding may be required on unfavorable terms or not at all.
  • Third-Party Dependence: Reliance on third-party contract manufacturers (CDMOs) and clinical research organizations (CROs) for drug supply and trial execution.
  • Regulatory Uncertainty: Extensive FDA and foreign regulatory requirements could delay or prevent approval.

Investor Verification Checklist

• Phase 1 Trial Status: Verify the timeline and safety data readout for the SL-325 Phase 1 trial (expected Q2 2026).
• Capital Runway: Confirm the actual exercise rate of outstanding warrants (52.5 million common stock warrants and 40.5 million pre-funded warrants) to validate the 2029 liquidity projection.
• SL-172154 Wind-down: Ensure all costs associated with the discontinued SL-172154 program have been fully recognized and no lingering liabilities exist.
• Manufacturing Supply: Review the status of the master service agreement with Kemwell Biopharma for SL-325 bulk drug substance production.
• Related Party Transaction: Review the terms of the Kayak Therapeutics license agreement and the potential for future milestone payments ($86 million potential).