Shattuck Labs, Inc. (STTK) - Q1 2025 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended March 31, 2025. Shattuck Labs, Inc. is a biotechnology company focused on developing treatments for inflammatory and immune-mediated diseases. The company's lead program is SL-325, a first-in-class death receptor 3 (DR3) antagonist antibody for inflammatory bowel disease (IBD). The company is classified as an emerging growth company and a smaller reporting company.
Key Financial Metrics
| Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Collaboration Revenue | $0 | $1.1 million |
| Net Loss | $(13.7) million | $(18.5) million |
| Net Loss Per Share (Basic/Diluted) | $(0.27) | $(0.37) |
| Research & Development (R&D) Expense | $9.9 million | $16.3 million |
| General & Administrative (G&A) Expense | $4.5 million | $4.9 million |
| Cash and Cash Equivalents (End of Period) | $60.9 million | $76.0 million |
| Accumulated Deficit | $(395.4) million | $(324.8) million |
| Net Cash Used in Operating Activities | $(12.0) million | $(16.2) million |
Note: The company had no long-term debt as of March 31, 2025. Total liabilities were $9.6 million, primarily consisting of accounts payable, accrued expenses, and operating lease liabilities.
Material Changes vs. Prior Period
- Revenue: Collaboration revenue dropped 100% to $0. This is due to the completion of all obligations and revenue recognition under previous agreements with Ono Pharmaceutical and ImmunoGen in 2024.
- R&D Expenses: Decreased by $6.3 million (39.0%) to $9.9 million. The reduction was driven by the discontinuation of the SL-172154 oncology program, workforce reductions, and the cessation of work under the Ono collaboration. This was partially offset by a $2.1 million increase in expenses for the lead program, SL-325.
- Net Loss: Improved by $4.8 million (26.0%) to $13.7 million, primarily due to lower operating expenses.
- Liquidity: Cash and cash equivalents increased by $3.5 million to $60.9 million, driven by $15.6 million in maturities of investments, which offset the $12.0 million used in operating activities.
Outlook, Risks, and Management Commentary
- Development Timeline: Management expects to file an Investigational New Drug (IND) application for SL-325 in the third quarter of 2025. Full enrollment for the Phase 1 clinical trial is expected in the second quarter of 2026.
- Liquidity Runway: Management believes current cash and cash equivalents of $60.9 million are sufficient to fund projected operations into 2027.
- Financing Constraints: The company is subject to General Instruction I.B.6 of Form S-3, limiting its At-The-Market (ATM) facility. As of March 27, 2025, the company can only sell up to approximately $24.5 million of common stock under the ATM facility until its public float exceeds $75 million.
- Risks: Key risks include the need for additional funding to complete development, potential delays in clinical trials, macroeconomic instability (inflation, tariffs), and the inherent uncertainty of drug development. The company has discontinued clinical development of SL-172154.
Investor Verification Checklist
- Cash Runway: Verify the accuracy of the "into 2027" funding estimate given the high burn rate and potential for clinical trial cost overruns.
- ATM Capacity: Confirm the current public float and the specific dollar limit ($24.5 million) on the ATM facility, as this restricts immediate equity fundraising options.
- SL-325 Progress: Monitor the timeline for the IND filing (Q3 2025) and Phase 1 enrollment (Q2 2026) as critical value drivers.
- Collaboration Pipeline: Assess the likelihood of securing new collaboration agreements to replace the revenue lost from the terminated Ono and ImmunoGen deals.
- Stock-Based Compensation: Review the $1.7 million in stock-based compensation expense and the $11.7 million in unrecognized costs for future dilution impact.