Scholar Rock: OLE Data In SMA Coupled With New CEO Make It A Buy

Summary

  • Shares are down 70% thus far in 2022.
  • TOPAZ data update for apitegromab in SMA was encouraging (as reflected in increases in HFMSE and RULM scores).
  • June financing was highly dilutive with warrants (allows key funds to hold higher exposure "off the books") and extends the runway into 2025.
  • SAPPHIRE phase 3 study has a good shot at success, but SRK-181 in solid tumors has yet to produce an efficacy signal.
  • SRRK is a Buy. Key risks include competition in the SMA space, disappointing data for SRK-181 and delays to clinical timelines.
  • Looking for option income ideas that focus on capital preservation? I offer this and much more at my exclusive investing ideas service, ROTY Biotech Community. Learn More »

SMA, spinal muscular atrophy, Written on wooden blocks, a rare disease in which, due to a genetic defect, neurons in the spinal cord responsible for muscle contraction and relaxation gradually die.

Andrzej Rostek/iStock via Getty Images

Shares of growth factor signaling specialist Scholar Rock (NASDAQ:SRRK) have lost over 20% of their value during the past 3 years and are down 70% so far in 2022. In ROTY's portfolio, I sold the remainder of my

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This article was written by

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