Shattuck Labs Halts CD47 Program, Reduces Workforce by 40% to Focus on IBD Drug

Shattuck Labs has announced significant changes to its business strategy, including a 40% reduction in its workforce and the termination of its CD47 program aimed at treating acute myeloid leukemia (AML) and higher-risk myelodysplastic syndromes (HR-MDS). The decision follows lackluster results from early-stage clinical trials.

On Tuesday, the company revealed that achieving drug approval for these conditions would necessitate a substantial improvement in overall survival rates through large-scale randomized studies. However, the Phase 1 trials demonstrated only modest enhancements in overall survival. This news led to a roughly 30% drop in Shattuck’s stock value in premarket trading.

Shattuck Labs is not alone in its struggle with CD47 research. Multiple companies have exited the field due to difficulties in obtaining solid clinical outcomes. Given Shattuck's current resources, the absence of a definitive overall survival benefit to date, and the general ineffectiveness of CD47 inhibitors in showing significant efficacy in any indication, the company has opted to reallocate its focus.

The company will now concentrate on a preclinical drug from its pipeline, specifically the DR3 antagonist antibody known as SL-325. This drug is being developed for the treatment of inflammatory bowel disease (IBD), and Shattuck is planning to submit an Investigational New Drug (IND) application in the third quarter of next year.

CEO Taylor Schreiber explained the strategic pivot in a statement, emphasizing the focus on SL-325, a DR3 antagonist antibody intended to offer a more complete blockade of the clinically validated TL1A/DR3 signaling pathway. This shift marks a significant change in Shattuck's research and development priorities.

In line with these strategic adjustments, Shattuck Labs and Ono Pharmaceutical have mutually agreed to terminate a collaboration and license agreement that was initiated in February to work on preclinical drug candidates. This change in direction is anticipated to extend Shattuck’s financial runway into 2027, providing the company with more time and resources to focus on its new priorities.

At the end of 2023, Shattuck Labs employed 75 full-time staff members. The workforce reduction and strategic reorientation are part of a broader effort to streamline operations and concentrate resources on projects with higher potential for clinical success.

These moves reflect Shattuck's commitment to adapting its strategy in response to clinical trial outcomes and resource constraints, aiming to focus on areas where it sees the most promise for developing effective treatments.