Shattuck Labs Enters into Strategic Collaboration and License Agreement with Ono Pharmaceutical to Generate Bifunctional Fusion Proteins for the Treatment of Autoimmune and Inflammatory Diseases

Rhea-AI Summary

Shattuck Labs, Inc. (STTK) collaborates with Ono Pharmaceutical Co., Ltd. to develop novel bifunctional fusion proteins for autoimmune and inflammatory diseases. The agreement includes significant financial incentives up to $227 million, showcasing the potential of this partnership in advancing biologic medicine.

Financial Analyst

The collaboration between Shattuck Labs and Ono Pharmaceutical represents a significant strategic alliance in the biotechnology sector, with potential financial implications for both companies. The agreement's structure, which includes an up-front payment and potential for additional milestone payments totaling up to $227 million, plus tiered royalties, provides Shattuck with both immediate and long-term revenue prospects. This influx of capital could be pivotal for Shattuck's cash flow, allowing for an expansion of research activities without diluting current shareholder value through additional equity financing.

Investors should note the deal's potential to accelerate Shattuck's pipeline development, which could lead to enhanced investor confidence and possibly an uptick in the company's stock valuation. However, it is also important to consider the inherent risks of drug development, where many candidates fail to reach commercialization. The tiered royalty structure suggests that Shattuck's earnings are directly tied to the commercial success of the products, which adds a layer of uncertainty to the future revenue stream.

Medical Research Analyst

The collaboration's focus on bifunctional fusion proteins for autoimmune and inflammatory diseases could have a substantial impact on patient treatment options. Bifunctional fusion proteins are an emerging class of therapeutics that combine two or more functions in a single molecule, potentially offering more effective and targeted treatments. By partnering with Ono Pharmaceutical, Shattuck leverages Ono's experience in drug development and commercialization, particularly in the Japanese market, which is known for its rigorous regulatory environment.

For stakeholders in the medical community, the success of this collaboration could mean the introduction of novel treatments that address limitations of current therapies. The partnership's success hinges on the ability to identify and develop compounds that offer clinical benefits over existing treatments. Given the high unmet need in autoimmune and inflammatory disease areas, any breakthroughs could lead to significant market opportunities and improve patient outcomes.

Market Research Analyst

From a market perspective, the collaboration between Shattuck and Ono could reshape competitive dynamics within the autoimmune and inflammatory disease space. The deal enables Shattuck to tap into Ono's established distribution networks and understanding of local market conditions, which is crucial for successful drug commercialization. The global autoimmune disease therapeutics market is expected to grow, driven by an increasing prevalence of autoimmune diseases and a strong pipeline of novel therapeutics.

Therefore, the partnership's ability to deliver innovative products could capture a significant share of this expanding market. It's also essential to monitor how this alliance might influence Shattuck's market positioning and whether it will lead to additional strategic partnerships or mergers and acquisitions, further consolidating the biotech industry.

AUSTIN, TX and DURHAM, NC, Feb. 13, 2024 (GLOBE NEWSWIRE) -- Shattuck Labs, Inc. (Shattuck) (NASDAQ: STTK), a clinical-stage biotechnology company pioneering the development of bifunctional fusion proteins as a new class of biologic medicine for the treatment of patients with cancer and autoimmune disease, today announces a worldwide drug discovery collaboration with Ono Pharmaceutical Co., Ltd. (Ono), to generate novel bifunctional fusion proteins targeting certain pathways in autoimmune and inflammatory diseases.

Under the terms of the agreement, Shattuck will receive an up-front payment and be eligible for success-based licensing, regulatory, and commercial milestone payments with a total value of up to $227 million, as well as tiered royalties based on global net sales. Shattuck will lead discovery research of certain prespecified compounds directed toward a pair of targets selected by Ono from Shattuck’s pipeline of bifunctional fusion proteins, and Ono will cover all of Shattuck’s associated research and development expenses. Shattuck granted to Ono an exclusive option to develop and commercialize multiple products resulting from the collaboration agreement. Following an option exercise, Ono will be responsible for further development and commercialization worldwide.

“We are excited to embark upon this collaboration with Ono Pharmaceutical, a leading Japanese pharmaceutical company with a track record of scientific innovation, which was enabled by Shattuck’s protein engineering and development expertise with complex fusion proteins,” said Taylor Schreiber, M.D., Ph.D., Chief Executive Officer of Shattuck Labs. “We have prioritized autoimmune and inflammatory diseases for a select group of preclinical pipeline candidates as we continue to expand into areas of high unmet need. This collaboration aligns with our strategy to unlock further value from our bifunctional fusion protein platform and scientific expertise.”

“We are actively working to create biologics in order to address unmet medical needs for a wide range of diseases. We appreciate Shattuck’s proprietary research and development capabilities and expertise in protein engineering, enabling the generation of functional biologics against therapeutic targets that have been difficult through conventional technologies and are excited to work with Shattuck’s team through this collaboration agreement,” said Toichi Takino, Senior Executive Officer/Executive Director, Discovery & Research of Ono Pharmaceutical. “We hope to add bifunctional fusion proteins discovered and developed by Shattuck into our portfolio to bring innovative drugs for patients suffering from autoimmune and inflammatory diseases as soon as possible.”

About Ono Pharmaceutical Co., Ltd.
Ono Pharmaceutical Co., Ltd., headquartered in Osaka, is an R&D-oriented pharmaceutical company committed to creating innovative medicines in specific areas. Ono focuses its research on oncology, immunology, neurology, and specialty research with high medical needs as priority areas for discovery and development of innovative medicines. For further information, please visit the company’s website at https://www.ono-pharma.com/en.

About Shattuck Labs, Inc.
Shattuck Labs, Inc. (NASDAQ: STTK) is a clinical-stage biotechnology company pioneering the development of bi-functional fusion proteins as a new class of biologic medicine for the treatment of patients with cancer and autoimmune disease. Compounds derived from Shattuck’s proprietary Agonist Redirected Checkpoint (ARC®), platform are designed to simultaneously inhibit checkpoint molecules and activate costimulatory molecules with a single therapeutic. The company’s lead SL-172154 (SIRPα-Fc-CD40L) program, which is designed to block the CD47 immune checkpoint and simultaneously agonize the CD40 pathway, is being evaluated in multiple Phase 1 trials. Shattuck has offices in both Austin, Texas and Durham, North Carolina. For more information, please visit: www.ShattuckLabs.com.

Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws, including, but not limited to, the collaboration and option agreement with Ono, the potential that Ono exercises its option thereunder and the potential for future licensing, milestone or royalty payments. Words such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “estimate,” “predict,” “potential,” “develop,” “plan” or the negative of these terms, and similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to the company on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties (including, without limitation, those set forth in Shattuck’s filings with the U.S. Securities and Exchange Commission (SEC)), many of which are beyond the company’s control and subject to change. Actual results could be materially different. Risks and uncertainties which could cause such outcomes to change include: the potential that the expected benefits and opportunities related to the collaboration may not be realized or may take longer to realize than expected; challenges inherent in new research and preclinical development; global macroeconomic conditions and related volatility; and other risks and uncertainties identified in Shattuck’s Annual Report on Form 10-K for the year ended December 31, 2022 and subsequent disclosure documents filed with the SEC. Shattuck claims the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. Shattuck expressly disclaims any obligation to update or alter any statements whether as a result of new information, future events or otherwise, except as required by law.

The Company intends to use the investor relations portion of its website as a means of disclosing material non-public information and for complying with disclosure obligations under Regulation FD.

Investor & Media Contact:
Conor Richardson
Vice President of Investor Relations
Shattuck Labs, Inc.
InvestorRelations@shattucklabs.com

What is the focus of the collaboration between Shattuck Labs and Ono Pharmaceutical?

The collaboration aims to develop novel bifunctional fusion proteins targeting certain pathways in autoimmune and inflammatory diseases.

What financial benefits does Shattuck Labs stand to gain from this collaboration?

Shattuck will receive an up-front payment and be eligible for success-based milestone payments with a total value of up to $227 million, along with tiered royalties based on global net sales.

Who will lead the discovery research of certain compounds in this collaboration?

Shattuck Labs will lead the discovery research of certain prespecified compounds directed toward targets selected by Ono from Shattuck's pipeline of bifunctional fusion proteins.

What is the role of Ono Pharmaceutical in the collaboration agreement?

Ono will cover all associated research and development expenses of Shattuck and has an exclusive option to develop and commercialize multiple products resulting from the collaboration.

What are the expectations from this collaboration in terms of bringing innovative drugs to patients?

The collaboration aims to bring innovative drugs for patients suffering from autoimmune and inflammatory diseases by leveraging Shattuck's expertise in protein engineering and development.