Tazeen Ahmad, an analyst from Bank of America Securities, reiterated the Buy rating on Scholar Rock Holding. The associated price target remains the same with $53.00.
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Tazeen Ahmad has given his Buy rating due to a combination of factors surrounding Scholar Rock Holding’s strategic approach and market potential. Despite the recent challenges with the FDA’s Official Action Indicated classification for their manufacturing partner’s facility, the company remains optimistic about addressing these issues in a timely manner. Scholar Rock is actively working with Novo Nordisk to expedite the re-inspection process, aiming to resolve the manufacturing delays without transferring to another partner.
Furthermore, the market opportunity for Scholar Rock’s drug, apitegromab, remains substantial, with a projected risk-adjusted peak sales of $2 billion by 2037. The current manufacturing setbacks are viewed as temporary delays rather than threats to the drug’s eventual approval, given that the clinical data remains strong. This potential, combined with the company’s proactive measures to address manufacturing concerns, supports the Buy rating with a price objective of $53.
Based on the recent corporate insider activity of 68 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.