Scholar Rock (SRRK, Financial) has announced significant changes in its leadership team, appointing David Hallal as the new Chief Executive Officer. Hallal, who has been the company's Chairman of the Board since 2017, succeeds Jay Backstrom. Before joining Scholar Rock, Hallal held several leadership roles at Alexion, including CEO, COO, and CCO.
In this strategic transition, Backstrom will continue to contribute as a strategic advisor. The company has also enhanced its executive team with key appointments. Akshay Vaishnaw has been named President of Research and Development, bringing experience from his previous role as President of Alnylam. Scholar Rock has appointed R. Keith Woods as Chief Operating Officer, who previously served as COO of argenx. Additionally, Vikas Sinha has joined as Chief Financial Officer, following his roles as CFO at Alexion and ElevateBio.
These changes come as Scholar Rock aims to strengthen its leadership and drive future growth. Investors and stakeholders are closely watching these developments within the company.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Scholar Rock Holding Corp (SRRK, Financial) is $50.43 with a high estimate of $57.00 and a low estimate of $45.00. The average target implies an upside of 53.70% from the current price of $32.81. More detailed estimate data can be found on the Scholar Rock Holding Corp (SRRK) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Scholar Rock Holding Corp's (SRRK, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
SRRK Key Business Developments
Release Date: February 27, 2025
- Clinical Success: Apitegromab plus standard of care delivered a 1.8-point improvement compared to placebo in the SMA-specific Hammersmith functional motor scale at week 52.
- Patient Improvement: 30% of patients achieved an additional 3-point or greater improvement in Hammersmith scores compared to 12.5% with placebo plus SMN therapy.
- Safety Profile: Safety consistent with TOPAZ data; over 95% of patients rolled over and remained in long-term follow-up study.
- Market Potential: Approximately two-thirds of 10,000 SMA patients in the US and 35,000 globally have received SMN-targeted therapy.
- Commercial Preparation: Scaling customer-facing team to roughly 50 personnel in late Q2 and early Q3 for potential Q4 launch.
- Cardiometabolic Program: Top-line data from EMBRAZE expected in Q2; IND filing for SRK439 in Q3.
- Lean Muscle Preservation: Aim to reduce lean muscle mass loss by 20% to 40% in EMBRAZE study.
- Regulatory Milestones: BLA for apitegromab submitted in the US in January; MAA submission in the EU on track for March.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Scholar Rock Holding Corp (SRRK, Financial) is on track to launch apitegromab, a muscle-targeted therapy for SMA, in the US in 2025, with plans to expand to the EU in 2026.
- The SAPPHIRE study showed that apitegromab plus standard of care delivered clinically meaningful and statistically significant improvements in motor function for SMA patients.
- The company is making significant progress in its cardiometabolic program, with plans to share top-line data from the EMBRAZE study in Q2 2025.
- Scholar Rock Holding Corp (SRRK) has a strong commercial strategy, including the 'Life Takes Muscle' campaign, to prepare the market for the new treatment paradigm in SMA.
- The company is actively engaging with payers and stakeholders to ensure access and coverage for apitegromab, reflecting its value in treating SMA.
Negative Points
- There is still uncertainty around the regulatory acceptance of body composition changes as a primary endpoint for the cardiometabolic program.
- The competitive landscape for weight loss therapies is intensifying, which may impact the commercial success of SRK-439.
- The company has not yet disclosed pricing details for apitegromab, which could affect market acceptance and payer negotiations.
- The development of additional neuromuscular indications for apitegromab is still in the early stages, with no specific timelines provided.
- The potential impact of preserving lean muscle mass on overall weight loss with GLP-1 receptor therapies remains uncertain, which could affect the perceived value of SRK-439.
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