Buy/High Risk: Apitegromab’s Differentiated SMA Profile and Expanding Neuromuscular Upside Support Significant Re-Rating Potential

Geoff Meacham, an analyst from Citi, has initiated a new Buy rating on Scholar Rock Holding (SRRK).

Geoff Meacham has given his Buy rating due to a combination of factors tied to both clinical performance and market potential. He views recent volatility around FDA-related manufacturing questions as excessive, since the issues at the contract manufacturer appear largely procedural rather than scientific, and expert feedback suggests they should be resolved in the near term with a path toward BLA resubmission and potential approval around early 2026. The phase 3 SAPPHIRE study for apitegromab in spinal muscular atrophy demonstrated statistically significant and clinically meaningful gains in motor function versus placebo, reinforcing confidence in the drug’s profile. Based on these data and the projected resolution of regulatory overhang, he expects apitegromab to secure a meaningful share of an SMA market that is already sizeable and expanding.

Meacham also underscores the strength of the commercial opportunity relative to the current valuation. His model forecasts global sales for apitegromab of roughly $1.7 billion by 2032 in SMA alone, slightly ahead of consensus, while noting that this does not yet fully reflect optionality in additional neuromuscular indications such as ALS, DMD/BMD, and FSHD. He argues that apitegromab’s mechanism, which targets muscle pathology independently of SMN pathways, positions it as a complementary therapy to existing SMA treatments and should support durable demand. Taken together—improving regulatory visibility, differentiated clinical profile, sizable core market, and unmodeled pipeline upside—these elements support his Buy/High Risk rating and $55 price target, implying meaningful upside from current levels.

In another report released on January 7, UBS also initiated coverage with a Buy rating on the stock with a $60.00 price target.

Based on the recent corporate insider activity of 65 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SRRK in relation to earlier this year.