Shattuck Labs (NASDAQ: STTK) climbed 4.91% after two analysts initiated coverage of the clinical-stage biotechnology company with positive ratings within three days.
TD Cowen analyst Stacy Ku began coverage over the weekend with a buy rating. Two days later, Raymond James analyst Martin Auster assigned a strong buy and a $18 price target, more than double the stock’s most recent close.
Both analysts focused on SL-325, Shattuck’s lead drug candidate. The potential first-in-class DR3-blocking antibody is being developed to treat Crohn’s disease and ulcerative colitis, two forms of inflammatory bowel disease. Analysts said the drug’s novel mechanism, which targets a specific receptor, could differentiate it from existing treatments. If approved, SL-325 could capture a meaningful share of a total addressable market estimated at no less than $20 billion.
Phase 1 data showed 3.7% of participants developed anti-drug antibodies. At doses of 1 mg/kg and higher, complete blockade of TL1A binding to DR3 lasted more than three months, supporting quarterly maintenance dosing. The drug was well tolerated with no evidence of DR3 agonism. Chief Executive Officer Taylor Schreiber said the results positioned SL-325 as a potentially winning antibody in the TL1A/DR3 axis.
The RECEPTIVE-CD1 Phase 2b trial is expected to start in the third quarter. The study will enroll about 232 patients with moderately to severely active Crohn’s disease, randomized equally across three dose levels and placebo. The primary endpoint is endoscopic response at 12 weeks. Data are expected in the first half of 2028. Patients will continue treatment through a 50-week maintenance phase.
Shattuck reported cash, cash equivalents, and short-term investments of $208.3 million as of June 30, up from $50.5 million a year earlier. Second-quarter research and development expenses were $11.7 million, and net loss was $15.2 million, or $0.12 per share. The company expects current cash to fund operations into 2029.
Shattuck is also developing SL-846, a potential first-in-class, half-life extended DR3 x IL-23 receptor bispecific antibody. The drug is in GLP toxicology studies in non-human primates, with preclinical data expected at UEG Week from October 17 to 20. A Phase 1 healthy volunteer trial is planned for 2027.
