H.C. Wainwright Downgrades Shattuck Labs (STTK) to Neutral

H.C. Wainwright analyst Joseph Pantginis downgraded Shattuck Labs (NASDAQ: STTK) from Buy to Neutral.

The analyst comments "Despite encouraging early clinical data; shifting gears away from CD47. This morning, Shattuck announced that following a strategic review of its pipeline and its amassed CD47 data to date in heme malignancies, it has chosen to reallocate its resources and will not continue pursuing SL-17254 in HR-MDS or TP53+ AML. An updated data cut across both programs shows incremental benefits for ORR and mOS compared to control. In light of the data and competitor benchmarks, management notes that the combination of SL-172154 + AZA does not provide a large enough additive benefit to warrant continued development. We note that while this news is disappointing given the overall positive data, with the current negative overhang surrounding the CD47 space in oncology, coupled with lingering investor wariness, the road ahead would likely remain challenging with the clinical data as they stand. Entering a rebuild phase, the company has now taken a pivot toward an autoimmune focused pipeline, which we highlight below. Given the early stage of the IND-enabling assets, we are downgrading our rating to Neutral pending visibility on clinical development."

For an analyst ratings summary and ratings history on Shattuck Labs click here. For more ratings news on Shattuck Labs click here.

Shares of Shattuck Labs closed at $3.49 yesterday.

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