Promising Clinical Trial Results Support a Buy Rating for Shattuck Labs

Shattuck Labs (STTK – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Kaveri Pohlman from BTIG maintained a Buy rating on the stock and has a $12.00 price target.

Kaveri Pohlman’s rating is based on the promising clinical trial data presented for Shattuck Labs’ SL-172154, which indicates a solid complete response (CR) rate and minimal residual disease (MRD) negativity in higher-risk myelodysplastic syndromes (HR-MDS) patients. The early data reveal a 39% CR rate among evaluable HR-MDS patients, with a strong correlation between achieving CR or modified CR with hematologic improvement (mCR+HI) and MRD-negative status. Moreover, none of the CR patients showed disease progression by the February 1, 2024, data cutoff, suggesting a durable response to the treatment. In addition, the report takes into account the potential for the upcoming European Hematology Association (EHA) presentation to provide mature data, which could further substantiate the drug’s efficacy.

Furthermore, despite the acute myeloid leukemia (AML) data appearing less compelling at first glance with a 21% combined CR and CR with incomplete hematologic recovery (CRi) rate, the fact that a significant proportion of AML responders were able to proceed with hematopoietic cell transplantation is noteworthy. This indicates a clinical benefit that could improve long-term outcomes. The expectation for more complete data to be revealed at EHA, with an increased patient count and longer follow-up, also contributes to the optimistic outlook. The safety profile, characterized by manageable adverse events (AEs), and the potential for meaningful duration of response (DoR) in both HR-MDS and AML patients, further support the Buy rating for Shattuck Labs.

Pohlman covers the Healthcare sector, focusing on stocks such as Arcus Biosciences, Nuvation Bio, and Gritstone Oncology. According to TipRanks, Pohlman has an average return of -1.2% and a 33.12% success rate on recommended stocks.

In another report released yesterday, Needham also maintained a Buy rating on the stock with a $12.00 price target.

TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.

Shattuck Labs (STTK) Company Description:

Shattuck Labs Inc is a clinical-stage biotechnology company pioneering the development of dual-sided fusion proteins as an entirely new class of biologic medicine. The company’s product candidate, SL-172154, has been rationally designed to simultaneously inhibit the CD47/SIRPa checkpoint interaction to restore an anti-tumor immune response and to activate the CD40 costimulatory receptor to bolster an immune response. Its product candidate, SL-279252, which is being developed in collaboration with Takeda Pharmaceuticals, or Takeda, has been rationally designed to simultaneously inhibit the PD-1/PD-L1 interaction and activate the OX40 receptor.