Scholar Rock (NASDAQ:SRRK) Issues Earnings Results

Scholar Rock (NASDAQ:SRRK) announced its quarterly earnings results on Thursday. The company reported ($0.84) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.84), FiscalAI reports. During the same quarter last year, the firm earned ($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 Trading Up 0.5%

Shares of NASDAQ:SRRK traded up $0.28 during trading on Friday, reaching $52.92. The stock had a trading volume of 958,146 shares, compared to its average volume of 1,086,059. The firm’s fifty day moving average is $50.06 and its 200 day moving average is $47.85. The company has a debt-to-equity ratio of 0.71, a quick ratio of 8.64 and a current ratio of 8.64. Scholar Rock has a 52 week low of $27.07 and a 52 week high of $58.49. The stock has a market cap of $6.34 billion, a price-to-earnings ratio of -15.34 and a beta of 0.69.

Analysts Set New Price Targets

Several analysts recently weighed in on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Scholar Rock in a research note on Friday, July 17th. HC Wainwright raised their target price on Scholar Rock from $58.00 to $65.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Barclays lifted their target price on Scholar Rock from $53.00 to $55.00 and gave the stock an “overweight” rating in a report on Friday, May 8th. Wedbush reiterated an “outperform” rating and issued a $58.00 price target on shares of Scholar Rock in a research report on Tuesday, July 21st. Finally, Canaccord Genuity Group initiated coverage on Scholar Rock in a research note on Monday, April 20th. They issued a “buy” rating and a $62.00 price target for the company. Four equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Scholar Rock has a consensus rating of “Buy” and a consensus price target of $56.79.

Insiders Place Their Bets

In other Scholar Rock news, Director Michael Gilman sold 2,544 shares of the company’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $53.87, for a total transaction of $137,045.28. Following the sale, the director owned 59,511 shares of the company’s stock, valued at approximately $3,205,857.57. This represents a 4.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing 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 company’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $53.88, for a total value of $164,495.64. Following the sale, the director owned 27,856 shares in the company, valued at approximately $1,500,881.28. The trade was a 9.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 17,149 shares of company stock valued at $923,108 over the last quarter. Company insiders own 10.30% of the company’s stock.

Hedge Funds Weigh In On Scholar Rock

Institutional investors and hedge funds have recently modified their holdings of the business. California State Teachers Retirement System grew its position in shares of Scholar Rock by 0.9% during the 2nd quarter. California State Teachers Retirement System now owns 62,372 shares of the company’s stock valued at $2,209,000 after acquiring an additional 577 shares during the period. Osaic Holdings Inc. raised its holdings in shares of Scholar Rock by 25.1% in the 4th quarter. Osaic Holdings Inc. now owns 3,318 shares of the company’s stock worth $146,000 after purchasing an additional 665 shares during the period. Caitong International Asset Management Co. Ltd bought a new stake in shares of Scholar Rock in the 4th quarter worth approximately $30,000. Summit Securities Group LLC purchased a new position in Scholar Rock in the fourth quarter valued at approximately $31,000. Finally, E Fund Management Co. Ltd. lifted its stake in Scholar Rock by 6.8% in the second quarter. E Fund Management Co. Ltd. now owns 11,146 shares of the company’s stock valued at $395,000 after purchasing an additional 710 shares during the last quarter. 91.08% of the stock is currently owned by institutional investors.

Scholar Rock Company Profile

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).