Shattuck Labs Stock Nosedives As Lead Cancer Therapy Fails: Retail Enthusiasm Evaporates

Shattuck Labs Inc. (STTK) plunged 43% on Tuesday, marking its steepest one-day decline ever, following the failure of its lead experimental cancer therapy, SL-172154, in an early-stage clinical trial.

The stock, the second-biggest loser across U.S. exchanges on Tuesday afternoon, saw retail sentiment nosedive to ‘extremely bearish’ (8/100) territory, with message volume spiking on Stocktwits.

Shattuck announced it will discontinue development of SL-172154 after the trial delivered only modest improvements in overall survival rates.

The Austin-based biotech firm also revealed plans to cut 40% of its workforce as part of a broader restructuring, shifting its focus to SL-325, an early-stage treatment for inflammatory bowel disease.

The company expects restructuring costs to range between $1.5 million and $1.75 million.

In another blow, Shattuck terminated a potentially lucrative licensing agreement with Japan’s Ono Pharmaceutical Co., further dampening its prospects.

As of June 30, Shattuck reported cash reserves totaling $105.3 million.

Tuesday’s brutal drop extends STTK’s year-to-date losses to approximately 73%, with the day’s trading volume exceeding 10 million shares — far above the average daily volume of about 197,000.

Shattuck, which went public in October 2020 with high hopes for its cancer treatments, is now scrambling to regroup as investor enthusiasm has evaporated. 

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