Scholar Rock (NASDAQ:SRRK) Announces Quarterly Earnings Results, Meets Estimates

Scholar Rock (NASDAQ:SRRK) released its quarterly earnings data on Thursday. The company reported ($0.84) EPS for the quarter, hitting the consensus estimate of ($0.84), FiscalAI reports. During the same period in the previous year, the company earned ($0.98) EPS.

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 stock traded up $0.28 on Friday, hitting $52.92. 958,146 shares of the company’s stock were exchanged, compared to its average volume of 1,086,059. Scholar Rock has a 12-month low of $27.07 and a 12-month high of $58.49. The firm has a 50 day moving average price of $50.06 and a two-hundred day moving average price of $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. The stock has a market cap of $6.34 billion, a P/E ratio of -15.34 and a beta of 0.69.

Insider Buying and Selling

In other Scholar Rock news, Director Kristina Burow sold 3,053 shares of the stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $53.74, for a total value of $164,068.22. Following the completion of the sale, the director directly owned 114,657 shares in the company, valued at approximately $6,161,667.18. This trade represents a 2.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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 firm’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $53.74, for a total value of $164,068.22. Following the completion of the sale, the director directly owned 19,518 shares of the company’s stock, valued at approximately $1,048,897.32. This represents a 13.53% 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 sold a total of 17,149 shares of company stock valued at $923,108 in the last 90 days. 10.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. AQR Capital Management LLC grew its holdings in shares of Scholar Rock by 609.3% during the first quarter. AQR Capital Management LLC now owns 57,294 shares of the company’s stock valued at $1,842,000 after buying an additional 49,217 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Scholar Rock by 12.3% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 53,046 shares of the company’s stock worth $1,709,000 after acquiring an additional 5,831 shares during the last quarter. Millennium Management LLC raised its stake in Scholar Rock by 37.4% in the 1st quarter. Millennium Management LLC now owns 200,255 shares of the company’s stock worth $6,438,000 after acquiring an additional 54,555 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Scholar Rock by 25.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 169,825 shares of the company’s stock worth $5,460,000 after acquiring an additional 34,594 shares during the period. Finally, Strs Ohio acquired a new stake in Scholar Rock during the 1st quarter worth about $77,000. Institutional investors and hedge funds own 91.08% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages have weighed in on SRRK. Cantor Fitzgerald reiterated an “overweight” rating on shares of Scholar Rock in a report on Thursday, June 18th. Wedbush restated an “outperform” rating and issued a $58.00 price objective on shares of Scholar Rock in a report on Tuesday, July 21st. Citigroup upped their price objective on shares of Scholar Rock from $58.00 to $60.00 and gave the stock a “buy” rating in a research note on Friday. HC Wainwright increased their target price 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. Finally, Canaccord Genuity Group initiated coverage on shares of Scholar Rock in a research report on Monday, April 20th. They set a “buy” rating and a $62.00 target price on the stock. Four investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Scholar Rock has an average rating of “Buy” and a consensus price target 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).