Shattuck Labs, Inc. (NASDAQ: STTK) witnessed a notable uptick in its stock performance on the US stock charts during the extended trading session observed on Tuesday. Post-market analysis revealed a commendable surge of 6.03%, propelling the stock price to $8.97. This momentum effectively countered the preceding regular-session decline of 5.37%, which concluded at $8.46. This upward trajectory was largely attributed to a pivotal strategic collaboration and licensing agreement.
The noteworthy development entailed Shattuck (STTK) announcing a global collaboration in drug discovery alongside Ono Pharmaceutical Co., Ltd. (Ono). The focus of this collaboration revolves around the creation of innovative bifunctional fusion proteins, targeting specific pathways associated with autoimmune and inflammatory diseases.
Under the terms delineated within the agreement, Shattuck is poised to receive an upfront payment, coupled with potential success-based payments spanning licensing, regulatory, and commercial milestones, collectively amounting to a substantial $227 million. Furthermore, the arrangement includes tiered royalties contingent upon global net sales.
Shattuck is entrusted with spearheading the discovery research of predetermined compounds aimed at a pair of targets selected by Ono from its pipeline of bifunctional fusion proteins. Ono, in turn, will cover all associated research and development expenditures.
Moreover, Shattuck has granted Ono an exclusive option to advance and commercialize multiple products emanating from this collaborative endeavor, thereby assuming responsibility for subsequent global development and commercialization endeavors post-option exercise.
This collaborative initiative with Ono Pharmaceutical was made feasible by Shattuck’s profound expertise in protein engineering and development, particularly in the realm of complex fusion proteins. With a deliberate focus on autoimmune and inflammatory diseases, Shattuck has strategically earmarked a select group of preclinical pipeline candidates, aligning with the company’s broader objective of addressing areas marked by significant unmet medical needs.
This synergistic collaboration echoes STTK’s overarching strategy aimed at unlocking enhanced value from its bifunctional fusion protein platform and scientific proficiency. Ono, known for its proactive endeavors in the realm of biologics to address diverse medical exigencies, is poised to integrate Shattuck’s bifunctional fusion proteins into its portfolio.
Leveraging Shattuck’s proprietary research and development competencies, particularly in protein engineering, Ono anticipates generating functional biologics targeting therapeutic endpoints that have hitherto posed challenges through conventional methodologies. This strategic integration underscores Ono’s commitment to expeditiously delivering innovative therapeutic solutions to patients grappling with autoimmune and inflammatory disorders.
