Michael Yee, an analyst from Jefferies, maintained the Buy rating on Scholar Rock Holding (SRRK – Research Report). The associated price target is $50.00.
Michael Yee has given his Buy rating due to a combination of factors surrounding Scholar Rock Holding’s strategic positioning and potential market impact. The company is on track for the approval and launch of apitegromab in the U.S. and EU markets by the fourth quarter, targeting the substantial $4-5 billion spinal muscular atrophy (SMA) market, where it could potentially capture $1-2 billion. Additionally, the upcoming Phase II proof-of-concept data for obesity treatment with apitegromab presents a significant opportunity, as it may demonstrate superior lean mass preservation compared to current GLP-1 treatments.
Despite potential trading risks associated with the obesity data, Yee views Scholar Rock as a strong investment due to its solid foundation in the SMA market, long intellectual property protection, and minimal risk from the Inflation Reduction Act. The company’s financial health is robust, with $437 million in cash, allowing it to fund its SMA launch and additional studies. Furthermore, the potential for mergers and acquisitions could enhance its strategic value, especially given the vast $100 billion total addressable market for obesity treatments.
In another report released today, H.C. Wainwright also maintained a Buy rating on the stock with a $50.00 price target.
SRRK’s price has also changed dramatically for the past six months – from $9.060 to $35.960, which is a 296.91% increase.