Scholar Rock (NASDAQ:SRRK) Announces Quarterly Earnings Results, Hits Expectations

Scholar Rock (NASDAQ:SRRK) issued its earnings results on Thursday. The company reported ($0.84) earnings per share for the quarter, hitting analysts’ consensus estimates of ($0.84), FiscalAI reports. During the same period 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 Up 0.5%

SRRK opened at $52.92 on Friday. The firm’s 50 day simple moving average is $50.06 and its two-hundred day simple moving average is $47.85. The company has a market capitalization of $6.34 billion, a PE ratio of -15.34 and a beta of 0.69. Scholar Rock has a 1-year low of $27.07 and a 1-year high of $58.49. The company has a current ratio of 8.64, a quick ratio of 8.64 and a debt-to-equity ratio of 0.71.

Insider Transactions at Scholar Rock

In other news, Director Katie Peng sold 5,446 shares of Scholar Rock stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $53.88, for a total transaction of $293,430.48. Following the transaction, the director directly owned 34,301 shares of the company’s stock, valued at $1,848,137.88. The trade was a 13.70% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Joshua Reed sold 3,053 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $53.74, for a total value of $164,068.22. Following the transaction, the director owned 19,518 shares of the company’s stock, valued at approximately $1,048,897.32. This trade represents a 13.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 17,149 shares of company stock worth $923,108 over the last three months. 10.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Scholar Rock

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd bought a new position in shares of Scholar Rock in the fourth quarter worth approximately $30,000. Summit Securities Group LLC purchased a new position in shares of Scholar Rock during the 4th quarter valued at $31,000. Strs Ohio bought a new position in Scholar Rock in the 1st quarter worth $77,000. US Bancorp DE boosted its holdings 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 buying an additional 1,268 shares during the period. Finally, Empowered Funds LLC purchased a new stake in Scholar Rock in the 4th quarter worth $114,000. Institutional investors own 91.08% of the company’s stock.

Analyst Ratings Changes

A number of analysts have recently commented on SRRK shares. Barclays lifted their price target on shares of Scholar Rock from $53.00 to $55.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th. HC Wainwright increased their price objective on shares of Scholar Rock from $58.00 to $65.00 and gave the company a “buy” rating in a research report on Friday, May 8th. Wedbush restated an “outperform” rating and issued a $58.00 target price on shares of Scholar Rock in a report on Tuesday, July 21st. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Scholar Rock in a research report on Thursday, June 18th. Finally, BMO Capital Markets reiterated an “outperform” rating and set a $76.00 target price on shares of Scholar Rock in a research note on Friday. Four investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average target price of $56.79.

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).