Form 4: Redmile Group Executes Cross Trades in Shattuck Labs Stock, Adjusts Beneficial Ownership

Redmile Group executed cross trades of Shattuck Labs stock at $1.25 per share, resulting in no profit and a reduction in beneficial ownership due to the cessation of an advisory role.

Summary

• Redmile Group, LLC engaged in cross trades involving 1,026,888 shares of Shattuck Labs common stock on December 4, 2024.
• These trades were executed at a price of $1.25 per share.
• The cross trades and concurrent transactions resulted in no profit for Redmile or Jeremy Green, and no change in their aggregate beneficial ownership.
• Redmile ceased serving as the investment advisor to a sub-advised account holding 75,765 shares of Shattuck Labs, leading to a reduction in their reported beneficial ownership.
• Redmile and Jeremy Green disclaim beneficial ownership of these 75,765 shares.
• Redmile may be deemed to beneficially own the reported securities as the investment manager of the Redmile Clients.
• Jeremy Green may also be deemed to beneficially own the reported securities as the principal of Redmile.
• Mr. Lee, a managing director of Redmile, serves on the board of directors of Shattuck Labs as a representative of Redmile and its affiliates.

Sentiment

Score: 6

Explanation: The document reflects routine trading activity and adjustments in beneficial ownership. There are no significant positive or negative implications, making the sentiment neutral to slightly positive due to the lack of negative impact from the trades.

Positives

• The cross trades were executed at the same price, resulting in no profit for Redmile or Jeremy Green.
• The transactions did not change the aggregate beneficial ownership of Redmile and Jeremy Green, indicating stability in their holdings.

Negatives

• Redmile's cessation of advisory services for an account holding 75,765 shares resulted in a reduction of their reported beneficial ownership.

Risks

• The disclaimer of beneficial ownership of 75,765 shares could potentially impact Redmile's influence or voting power in Shattuck Labs.
• Changes in advisory roles can lead to fluctuations in reported ownership and potentially affect investor perception.

Management Comments

• Redmile and Mr. Green disclaim beneficial ownership of the Account Shares for purposes of Section 16 of the Securities Exchange Act of 1934, as amended, or for any other purpose.
• Redmile may be deemed to beneficially own the reported securities as the investment manager of the Redmile Clients.
• The reported securities may also be deemed beneficially owned by Jeremy Green as the principal of Redmile.

Industry Context

This filing reflects routine trading activity and adjustments in beneficial ownership by a major investment firm, which is common in the biotech sector. Redmile's role as a significant shareholder and board representative is typical for institutional investors in publicly traded companies.

Comparison to Industry Standards

• Cross trades are a common practice among institutional investors to manage their portfolios, and the execution at the same price is standard.
• The disclaimer of beneficial ownership due to the cessation of an advisory role is also a typical occurrence in the investment management industry.
• Redmile's board representation is similar to other investment firms that hold significant stakes in public companies, such as OrbiMed Advisors and RA Capital Management.

Stakeholder Impact

• The cross trades had no direct impact on shareholders as they did not affect the price or ownership structure.
• The reduction in Redmile's beneficial ownership due to the cessation of an advisory role may have a minor impact on the company's perception by investors.

Key Dates

Keywords

Redmile Group, Shattuck Labs, cross trades, beneficial ownership, investment advisor, Jeremy Green, Section 16, board of directors