Scholar Rock (NASDAQ:SRRK) Issues Quarterly Earnings Results

Scholar Rock (NASDAQ:SRRK) posted its quarterly earnings data on Thursday. The company reported ($0.84) EPS for the quarter, meeting the consensus estimate of ($0.84), FiscalAI reports. During the same quarter in the previous year, the business posted ($0.98) earnings per share.

Here are the key takeaways from Scholar Rock’s conference call:

• U.S. approval remains on track for September 30, with FDA review of apitegromab progressing and two independent fill-finish approval paths. The second facility has submitted all required data, has more launch-ready vials than Catalent Indiana, and is considered fully independent.
• The FDA’s classification of the Catalent Indiana facility remains pending beyond the expected 90-day guidance period, creating continued regulatory uncertainty. Europe’s MAA also depends on this issue or on the EMA accepting the second facility, so the company has not provided an updated European approval timeline.
• Scholar Rock says its U.S. commercial organization is launch-ready across approximately 140 treatment centers and 2,600 prescribing physicians, with patient-support and reimbursement activities underway. However, prior authorization is expected for most patients, and the company estimates that early-launch patients may wait more than 60 days for infusion while a J-code and coverage policies are established.
• The company initiated the randomized phase II FORGE trial of apitegromab in facioscapulohumeral muscular dystrophy, while enrollment continues robustly in the pediatric OPAL SMA study. The phase I study of high-potency anti-myostatin antibody SRK-439 is also progressing, with top-line data expected later this year.
• Scholar Rock ended the quarter with $492 million in cash, equivalents, and marketable securities, including $63 million of net ATM proceeds. Following approval, it may access an additional $150 million under its debt facility and plans to monetize a priority review voucher to strengthen liquidity.

Scholar Rock Stock Performance

Shares of NASDAQ:SRRK traded up $4.77 during trading on Thursday, hitting $52.64. 1,617,010 shares of the company were exchanged, compared to its average volume of 1,045,770. Scholar Rock has a 52-week low of $27.07 and a 52-week high of $58.49. The stock has a 50 day moving average of $49.99 and a 200 day moving average of $47.82. The company has a debt-to-equity ratio of 0.71, a current ratio of 8.64 and a quick ratio of 8.64. The company has a market cap of $6.31 billion, a PE ratio of -14.66 and a beta of 0.69.

Insider Buying and Selling

In related news, Director Katie Peng sold 5,446 shares of the business’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $53.88, for a total transaction of $293,430.48. Following the sale, the director directly owned 34,301 shares in the company, valued at approximately $1,848,137.88. The trade was a 13.70% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jeffrey S. Flier sold 3,053 shares of the stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $53.88, for a total value of $164,495.64. Following the sale, the director directly owned 27,856 shares in the company, valued at $1,500,881.28. This trade represents a 9.88% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 17,149 shares of company stock valued at $923,108 in the last 90 days. Corporate insiders own 10.30% of the company’s stock.

Institutional Investors Weigh In On Scholar Rock

Several hedge funds and other institutional investors have recently modified their holdings of SRRK. Caitong International Asset Management Co. Ltd bought a new position in shares of Scholar Rock in the fourth quarter valued at approximately $30,000. Summit Securities Group LLC bought a new stake in Scholar Rock during the 4th quarter worth approximately $31,000. Strs Ohio bought a new stake in Scholar Rock during the 1st quarter worth approximately $77,000. US Bancorp DE lifted its stake in Scholar Rock by 81.6% in the 3rd quarter. US Bancorp DE now owns 2,822 shares of the company’s stock worth $105,000 after purchasing an additional 1,268 shares in the last quarter. Finally, Empowered Funds LLC purchased a new stake in Scholar Rock in the 4th quarter worth approximately $114,000. 91.08% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

SRRK has been the topic of a number of recent analyst reports. Wedbush reiterated an “outperform” rating and set a $58.00 price target on shares of Scholar Rock in a report on Tuesday, July 21st. Weiss Ratings restated a “sell (d-)” rating on shares of Scholar Rock in a research note on Friday, July 17th. Canaccord Genuity Group started coverage on Scholar Rock in a research report on Monday, April 20th. They set a “buy” rating and a $62.00 target price for the company. Barclays lifted their target price on Scholar Rock from $53.00 to $55.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th. Finally, HC Wainwright boosted their price target on shares of Scholar Rock from $58.00 to $65.00 and gave the stock a “buy” rating in a report on Friday, May 8th. Four research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Scholar Rock has a consensus rating of “Buy” and an average price target of $56.21.

About Scholar Rock

Scholar Rock is a clinical-stage biotechnology company focused on the discovery and development of protein therapeutics that selectively target growth factors involved in disease processes. The company’s research platform is designed to modulate endogenous growth factor activation and signaling with high specificity, aiming to restore normal biological function across a range of disorders. Scholar Rock’s approach is distinguished by its emphasis on engineering antibodies and biologics that interact with growth factor precursors or latent complexes rather than the active form, potentially offering improved safety and efficacy profiles.

The company’s lead program, SRK-015 (appercept), is an investigational monoclonal antibody targeting the activation of latent myostatin proproteins and is being evaluated for the treatment of spinal muscular atrophy (SMA).