TD Cowen analyst Marc Frahm has maintained their bullish stance on SRRK stock, giving a Buy rating today.
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Marc Frahm’s rating is based on several key developments surrounding Scholar Rock Holding’s progress with their primary asset, apitegromab. The company recently reported a significant net loss, but it also has a strong cash position that extends into 2027, providing financial stability as it navigates regulatory hurdles. A crucial factor in the Buy rating is the positive outcome of a Type A meeting with the FDA, which included representatives from Novo and the SMA community, indicating alignment on the urgency of approving apitegromab for SMA treatment.
Another important aspect influencing the Buy rating is the anticipated readiness of Novo’s fill/finish facility for reinspection by the end of the year. This facility’s reinspection is critical for the resubmission of apitegromab’s Biologics License Application (BLA) in 2026. Scholar Rock’s management is optimistic about meeting this timeline, which could lead to the approval of apitegromab in the same year. The expectation that the FDA will prioritize the inspection due to the facility’s significance to the U.S. biologic drug supply further supports the positive outlook for Scholar Rock’s stock.
In another report released today, BMO Capital also maintained a Buy rating on the stock with a $50.00 price target.