Shattuck Labs, Inc. Annual Report Summary

Shattuck Labs, Inc. Annual Report Summary (Fiscal Year Ended December 31, 2025)

Business Overview: Shattuck Labs, Inc. (NASDAQ: STTK), an Austin, Texas-based clinical-stage biotechnology company, pioneers innovative immunotherapies for cancer and autoimmune diseases. The company developed its unique Agonist Redirected Checkpoint (ARC®) platform to simultaneously block immune system "brakes" and activate its "accelerators." This novel approach aims to reprogram the immune system to fight disease more effectively.

Financial Performance: For the fiscal year ended December 31, 2025, Shattuck Labs reported revenue of approximately $5 million, primarily from collaboration agreements. As the company heavily invests in research and development (R&D), it posted a net loss of $120 million for the year, with R&D expenses reaching $95 million. Revenue remained consistent with the prior fiscal year, typical for a company at this early development stage. However, the net loss increased as R&D and clinical trial costs expanded.

Risk Factors: Investors should be aware of the significant risks inherent in clinical-stage biotechnology companies like Shattuck Labs:

• Clinical Trial Uncertainty: The success of lead candidate SL-172154 and other pipeline drugs is highly uncertain. Clinical trials are costly, time-consuming, and may not deliver positive results or regulatory approval.
• Future Funding Needs: Despite its current cash, the company's high R&D spending means it will need substantial additional capital to finish clinical development and commercialize any approved products. This could dilute existing shareholders' equity.
• Regulatory Hurdles: Regulatory approval from bodies like the FDA is complex and unpredictable, with no guarantee of success even with positive clinical data.
• Intense Competition: The oncology and autoimmune markets are highly competitive. Many established pharmaceutical companies and other biotechs develop similar or alternative treatments.
• Intellectual Property Protection: Protecting its proprietary ARC® platform and drug candidates through patents is critical. Challenges to its intellectual property could severely impact its business and competitive position.
• Talent Retention: The company's success depends heavily on attracting and retaining highly qualified scientific and executive personnel in a competitive industry.

Management Discussion (MD&A Highlights): The past year brought significant advancements to Shattuck Labs' clinical pipeline. Its lead candidate, SL-172154 (CD47/PD-1 ARC®), progressed through Phase 1b clinical trials across several cancer types, showing encouraging safety and early signs of effectiveness. This progress reinforces the company's strategy to develop novel therapies for challenging cancers. Additionally, Shattuck Labs announced a new research collaboration with a major pharmaceutical partner. This partnership aims to explore the ARC® platform's potential in autoimmune diseases, offering future milestone payments and non-dilutive funding, and validating the platform's utility beyond oncology. Management remains focused on accelerating SL-172154's clinical development and expanding its ARC® candidate portfolio.

Financial Health: Shattuck Labs ended December 31, 2025, with a strong cash position, holding $200 million in cash and equivalents. The company carried no significant long-term debt, funding its operations primarily through equity and collaboration agreements. At its current spending rate, Shattuck Labs anticipates this capital will last into late 2027. However, the company will likely need substantial additional financing to advance its pipeline through later clinical trials and potential commercialization. As of June 30, 2025, its publicly traded shares had a market value of approximately $22.8 million, with about 71.6 million shares outstanding as of February 26, 2026. This highlights its status as a smaller, development-stage public company.

Future Outlook: Looking ahead, Shattuck Labs will continue clinical development for SL-172154 and other ARC® candidates. Key milestones include further data readouts from ongoing trials and potentially starting new studies. The company's long-term success depends on positive clinical outcomes, securing future funding, and effectively navigating the competitive and regulatory landscape.

Competitive Position: Shattuck Labs faces intense competition in the oncology and autoimmune disease markets. Its competitive edge comes primarily from its proprietary Agonist Redirected Checkpoint (ARC®) platform. This platform offers a differentiated approach to immunotherapy by uniquely blocking immune system "brakes" while boosting its "accelerators." The company believes this dual mechanism of action provides a potential advantage over single-target therapies. Its intellectual property portfolio, including patents covering the ARC® platform and lead drug candidates, is crucial for maintaining this edge. However, the competitive landscape includes many established pharmaceutical and biotech firms with greater financial, technical, and human resources, as well as more extensive experience in clinical development, manufacturing, and commercialization.