Form 4: OrbiMed Increases Stake in Shattuck Labs via Offering

OrbiMed Advisors acquired over 1.25 million pre-funded warrants in Shattuck Labs' recent public offering.

Summary

• OrbiMed Advisors LLC, along with affiliated entities, participated in a public offering by Shattuck Labs, Inc. (STTK).
• The transaction involved the acquisition of 1,041,667 pre-funded warrants by OrbiMed Private Investments IX, LP and 208,333 pre-funded warrants by OrbiMed Genesis Master Fund, L.P.
• The pre-funded warrants were acquired at a price of $3.9999 per warrant, with an exercise price of $0.0001 per share.
• The public offering, which closed on June 11, 2026, included an aggregate of 10,879,376 shares of common stock and pre-funded warrants.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as neutral-to-positive; while it indicates dilution, the continued support from a major institutional investor like OrbiMed provides a vote of confidence in the company's long-term prospects.

Positives

• Significant institutional backing from OrbiMed, a major healthcare-focused investment firm.
• Successful completion of a public offering, providing capital to the issuer.

Negatives

• The offering results in dilution for existing shareholders due to the issuance of over 10 million new shares and warrants.

Risks

• Beneficial ownership is subject to a 9.99% blocker provision on the pre-funded warrants.
• Market volatility associated with equity offerings in the biotechnology sector.

Future Outlook

The pre-funded warrants are exercisable at any time after issuance, subject to a 9.99% ownership blocker, and will expire once exercised in full.

Management Comments

• The reporting persons disclaim beneficial ownership of the reported securities except to the extent of their pecuniary interest.
• Mona Ashiya, a member of OrbiMed Advisors, serves on the Issuer's board of directors.

Industry Context

StockSavvy.ai notes that institutional participation in follow-on offerings is a common strategy for biotech firms to extend cash runways, though it often signals a need for external capital to fund clinical development pipelines.

Comparison to Industry Standards

• The use of pre-funded warrants is a standard mechanism in biotech offerings to allow investors to participate without immediately exceeding beneficial ownership thresholds.
• OrbiMed's continued investment aligns with typical venture-backed biotech governance where early investors maintain significant board representation and ownership stakes.

Corporate Governance

Related Party Transactions

• The reporting persons are deemed to have voting and investment power over the securities held by OPI IX and Genesis Master Fund.

Stakeholder Impact

• Existing shareholders face dilution from the issuance of new shares and warrants.
• The company strengthens its balance sheet through the capital raised in the offering.

Next Steps

• Potential future exercise of pre-funded warrants by OrbiMed entities.
• Ongoing monitoring of board representation by OrbiMed representative Mona Ashiya.

Key Dates

Recommendation

The filing reflects a standard capital raise. While institutional support is positive, the dilution inherent in the offering suggests a hold position until further clinical milestones are achieved.

Keywords

Shattuck Labs, STTK, OrbiMed, SEC Form 4, Biotech, Public Offering, Warrants, Insider Ownership