Shattuck Labs Reports Revenue Growth, Improved Losses, and Restructuring Efforts in Latest 10-Q Filing

Shattuck Labs, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on developing treatments for inflammatory and immune-mediated diseases, cancer, and other therapeutic areas, experienced a notable increase in collaboration revenue, which reached $2.997 million for the three months ended September 30, 2024, compared to $686,000 for the same period in 2023. For the nine months ended September 30, 2024, collaboration revenue totaled $5.721 million, a substantial increase from $943,000 in the prior year.

Despite the revenue growth, Shattuck Labs continues to face challenges with profitability. The company reported a net loss of $16.675 million for the third quarter of 2024, down from a loss of $27.541 million in the same quarter of 2023, reflecting a 39.5% improvement. For the nine-month period, the net loss was $56.731 million, compared to $69.611 million in the previous year, marking an 18.5% reduction. The loss from operations also improved, decreasing to $(17.920 million) from $(28.598 million) year-over-year for the third quarter.

Research and development expenses have decreased significantly, totaling $16.313 million for the third quarter of 2024, down from $24.211 million in 2023, and $51.816 million for the nine months ended September 30, 2024, compared to $59.083 million in the prior year. This reduction is attributed to the discontinuation of the SL-172154 program and a strategic focus on the lead program, SL-325, a potential first-in-class death receptor 3 (DR3) antagonist antibody.

In terms of financial position, Shattuck Labs reported total assets of $111.720 million as of September 30, 2024, down from $159.564 million at the end of 2023. Cash and cash equivalents decreased to $43.829 million from $125.626 million during the same period. The accumulated deficit increased to $(363.041 million) as of September 30, 2024, compared to $(306.310 million) at the end of 2023.

Strategically, the company has undergone a restructuring plan effective October 1, 2024, aimed at optimizing its cost structure and aligning its workforce with current goals. Approximately 40% of the workforce was impacted by this restructuring, which is expected to incur charges between $1.5 million and $1.75 million, primarily related to severance costs. The company also terminated its collaboration agreement with Ono Pharmaceutical Co., Ltd. on September 30, 2024, which had generated $5.4 million in revenue for the nine months ended September 30, 2024.

Overall, while Shattuck Labs has made strides in revenue generation and cost management, it continues to navigate significant losses and a challenging financial landscape as it advances its product development initiatives.