Shattuck Labs plunges on discontinuing development of cancer therapy

Shattuck Labs

01/10/2024 14:52

(Updates)
    ** Shares of drug developer Shattuck Labs  STTK.O  fall 
50.4% to $1.73, lowest in nearly one year 
    ** Co says it is discontinuing development of its
experimental cancer therapy SL-172154 as part of a strategic
pipeline prioritization
    ** Co says it plans to discontinue development of the
therapy after seeing only modest improvements in overall
survival in an early-stage study 
    ** Says it will turn its focus on SL-325, and plans to test
it in patients with inflammatory bowel disease 
    ** Says about 40% of its workforce will be impacted by the
changes and expects to complete the reduction in force in Q4 of
2024
    ** Co expects to incur restructuring charges of $1.5 mln to
$1.75 mln 
    ** As of June 30, co had cash, cash equivalents and
investments of $105.3 mln
    ** Up to last close, stock was down 51% YTD 

 (Reporting by Sneha  S K)
 ((Sneha.SK@thomsonreuters.com;))