CAMBRIDGE, MA— Scholar Rock Holding Corp (NASDAQ:SRRK) recently disclosed that its Chief Medical (TASE:PMCN) Officer, Jing L. Marantz, sold a portion of her holdings in the company. This transaction, executed on November 11, involved the sale of 2,105 shares of common stock at an average price of $30.004 per share, resulting in a total transaction value of approximately $63,158.
In addition to the sale, Marantz exercised stock options to acquire 2,105 shares at a price of $8.59 per share. These transactions were conducted under a Rule 10b5-1 trading plan, which had been adopted earlier in the year on April 19.
Following these transactions, Marantz's direct ownership stands at 72,855 shares. The transactions reflect routine financial management by the executive and were executed as part of a pre-established trading plan.
In other recent news, Scholar Rock, a biopharmaceutical company, reported positive results from its Phase 3 SAPPHIRE study for apitegromab, a potential treatment for spinal muscular atrophy (SMA). The study met its primary endpoints, leading to a significant improvement in motor function. Investment firms BMO Capital Markets and H.C. Wainwright adjusted their stock price targets for Scholar Rock, increasing them to $39.00 and $40.00 respectively. Both firms maintained their positive ratings on the stock.
Additionally, Scholar Rock is preparing to submit regulatory applications in Q1 2025, with a U.S. commercial launch of apitegromab planned for Q4 2025. The company also completed a $345 million follow-on offering, raising its cash balance to approximately $463 million. Analysts suggest that apitegromab has the potential to generate over $1 billion in revenue.
In other developments, Scholar Rock is also focusing on obesity management through the EMBRAZE Phase 2 study and the development of SRK-439. These recent developments reflect Scholar Rock's focus on addressing unmet needs in SMA treatment and obesity management.
InvestingPro Insights
Scholar Rock Holding Corp (NASDAQ:SRRK) has been experiencing significant market volatility, as evidenced by recent InvestingPro data. The company's stock has seen a substantial 174.56% price return over the last three months, despite a 10.02% decline in the past week. This volatility aligns with an InvestingPro Tip indicating that SRRK "generally trades with high price volatility."
The recent insider sale by the Chief Medical Officer occurred at a price of $30.004 per share, which is notably higher than the InvestingPro Fair Value estimate of $16.86. This discrepancy suggests that the stock may be trading at a premium to its intrinsic value. Additionally, with a Price to Book ratio of 19.18, SRRK is trading at a high multiple relative to its book value, another point highlighted by InvestingPro Tips.
Despite the strong recent performance, investors should note that Scholar Rock is not currently profitable, with a negative gross profit of $150.76 million in the last twelve months. This aligns with the InvestingPro Tip that the company "suffers from weak gross profit margins" and is not expected to be profitable this year.
For those seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for SRRK, providing a deeper understanding of the company's financial health and market position.
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