3. Scholar Rock Holding Corporation (NASDAQ:SRRK)
Number of Hedge Fund Holders In Q2 2024: 30
Short Interest % of Shares Outstanding: 19.98
YTD Share Price Loss: 50.63%
Scholar Rock Holding Corporation (NASDAQ:SRRK) is a biotechnology company developing treatments for muscular atrophy, cancer, fibrosis, and other ailments. It is a risky stock since the firm does not generate revenue through any commercial drugs. This means that Scholar Rock Holding Corporation (NASDAQ:SRRK)’s hypothesis is dependent on its ability to use cash to fund its under trial drugs. The firm’s operating expenses during Q2 2024 were $59.4 million while its cash and equivalents were $93 million. This means that Scholar Rock Holding Corporation (NASDAQ:SRRK) has less than two quarters of runway before it has to liquidate short term instruments to fund its business. However, there has been positive news on the pipeline front as Scholar Rock Holding Corporation (NASDAQ:SRRK) reported in August that participants in a trial of its apitegromab drug for muscular atrophy showed promising results as 90% of participants had improved their motor skills over 48 months. Investors rewarded the news with the stock soaring by 18% over the next couple of days.
Scholar Rock Holding Corporation (NASDAQ:SRRK)’s management shared details about its drugs during the Q2 2024 earnings call. Here is what it said:
“In addition to the sustained functional improvement, the updated data continued to reinforce the safety and tolerability of apitegromab with over 90% remaining on treatment and no new safety findings. Taking together, the 48-month data further reinforce our confidence in the SAPHIRE study and the potential for apitegromab to improve the lives of those living with SMA. A successful SAPHIRE study will allow serve as the foundation for building a neuromuscular franchise, and we are planning to extend our efforts in estimated children under 2, as well as expanding into other neuromuscular indications. For our cardiometabolic programs, we believe our highly selective approach to blocking the pro and latent forms of myostatin can meaningfully contribute to healthy weight loss management.
We formally announced our entry into the cardiometabolic area less than 10 months ago, and we’ve wasted no time in moving our programs forward. Starting with EMBRAZE, our randomized Phase 2 proof of concept study in obesity, assessing apitegromab in combination with a GLP-1 agonist, it is ahead of schedule and we are now positioned to complete enrollment in early Q4 and have updated our guidance for the top-line results to Q2 2025. As you’ll hear from Moe, the non-clinical data generated to date with SRK-439, our novel anti-myostatin, continues to support a potential best-in-class approach for preserving muscle mass leading to healthy weight loss management. The data presented at ADA add to the body of evidence, demonstrating an increase in lean mass and reduced fat mass regain with SRK-439 following withdrawal of the GLP-1 receptor agonist.”
