Shattuck Labs has secured up to approximately $103 million in an oversubscribed private placement to advance its lead therapeutic candidate SL-325, a potential first-in-class Death Receptor 3 (DR3) blocking antibody for autoimmune and inflammatory diseases. The financing, led by OrbiMed with participation from both new and existing investors, positions the biotechnology company to advance SL-325 through multiple Phase 2 clinical trials.
Financing Structure and Timeline
The private placement involves 15,225,158 shares of common stock and pre-funded warrants to purchase 37,410,188 shares, along with accompanying warrants for 52,635,346 shares. The purchase price is set at $0.8677 per share with accompanying warrants, while the warrant exercise price is $1.0846. The company anticipates initial gross proceeds of approximately $46 million, with up to an additional $57 million available if warrants are fully exercised.
The closing of the private placement is contingent upon Investigational New Drug Application (IND) clearance for SL-325 and other customary conditions. Combined with current cash and cash equivalents, the total proceeds are expected to fund operations into 2029.
SL-325: Targeting the DR3/TL1A Pathway
SL-325 represents a novel approach to treating autoimmune diseases by targeting Death Receptor 3 rather than its ligand TL1A. According to Taylor Schreiber, M.D., Ph.D., Chief Executive Officer of Shattuck, "SL-325 is a potentially first-in-class DR3 blocking antibody intended for development in Crohn's disease, ulcerative colitis, and a range of other autoimmune and inflammatory diseases."
Preclinical studies demonstrate that SL-325 achieves high affinity binding and superior activity compared to TL1A antibodies. The company's research provides a data-driven rationale for targeting the TNF receptor DR3 versus its ligand TL1A, potentially offering advantages in both efficacy and immunogenicity profiles.
Clinical Development Strategy
Enrollment in the Phase 1 clinical trial for SL-325 in healthy volunteers is expected to begin in the third quarter of 2025, subject to regulatory alignment. The study will evaluate the safety and pharmacokinetics of the antibody before advancing to Phase 2 trials.
"This financing will allow us to transition seamlessly into multiple Phase 2 clinical trials, where the data will reveal whether DR3 blockade leads to both superior efficacy and reduced immunogenicity in comparison to TL1A blocking antibodies," Schreiber stated.
The company plans to conduct Phase 2 trials in inflammatory bowel disease (IBD), including both Crohn's disease and ulcerative colitis, as well as potentially another autoimmune disease. These trials are expected to begin in 2026, following completion of the Phase 1 study.
Investor Participation and Market Position
The private placement attracted significant investor interest, with participation from OrbiMed, a large healthcare-dedicated fund, Coastlands Capital, Prosight Capital, Adage Capital, Redmile Group, and NextBio Capital. Wedbush & Co., LLC served as the sole placement agent for the transaction.
Shattuck Labs specializes in developing treatments for autoimmune and inflammatory diseases, with particular expertise in protein engineering and TNF receptor therapeutics. The company's focus on the TNF superfamily receptors positions it in a clinically validated pathway with potential for differentiated therapeutic approaches.
Regulatory and Commercial Pathway
The accompanying common stock warrants are immediately exercisable and expire 30 days after public announcement of Phase 1 data and Phase 2 trial design, events expected to occur in 2026. This structure aligns investor interests with clinical milestones and provides additional funding flexibility as the program advances.
The company has agreed to file a registration statement with the Securities and Exchange Commission for the resale of shares purchased in the private placement and underlying warrant shares. This regulatory step will provide liquidity options for investors while supporting the company's capital structure.
