HC Wainwright upgraded Shattuck Labs Inc. (NASDAQ: STTK) from Neutral to Buy, with a price forecast of $6. The company’s lead product candidate, SL-325, is a DR3 antagonist antibody for inflammatory bowel disease (IBD).
The company dosed the first healthy participants in the single-ascending dose (SAD) portion of the Phase 1 clinical trial in the third quarter of 2025.
Enrollment of SAD and multiple-ascending dose (MAD) portions is expected to be completed in the second quarter of 2026.
“We see an opportunity for SL-325 to enter and take up significant market share,” analyst Joseph Pantginis wrote on Monday.
Several competitors are currently later in development and have established clinical proof-of-concept with the TL1A approach, he added. But one key lingering concern that remains with their shared MoA is immunogenicity.
The TL1A/DR3 development landscape for inflammatory bowel disease (IBD), including ulcerative colitis (UC) and Crohn’s Disease (CD), has been a popular (including Big Pharma) signaling axis to target, but only the TL1A side of the axis with ligand blocking mAbs.
Merck & Co. Inc.’s (NYSE: MRK) tulisokibart and Roche Holdings AG’s (OTC: RHHBY) afimkibart are among the leading late-stage TL1A programs, with encouraging data so far. However, the durability of response and rising concerns around immunogenicity and anti-drug antibodies remain common constraints across the class.
Shattuck aims to differentiate by targeting the opposite side of the pathway—DR3—with its candidate SL-325. While receptor-level targeting has historically been more complex than blocking the soluble TL1A ligand, Shattuck's antibody-engineering capabilities have allowed it to effectively antagonize DR3, where others have struggled.
Because DR3 is constitutively expressed, blocking the receptor is expected to deliver more durable inflammatory control than ligand-level inhibition, given TL1A's transient, inflammation-driven expression in the gut.
Price Action: STTK stock is up 13.3% at $2.38 at the last check on Monday.