Promising Potential in Scholar Rock’s Obesity and SMA Programs Drives Buy Rating

Dennis Kennedy, an analyst from LifeSci Capital, maintained the Buy rating on Scholar Rock Holding (SRRK – Research Report). The associated price target remains the same with $48.00.

Dennis Kennedy has given his Buy rating due to a combination of factors surrounding Scholar Rock’s potential in the pharmaceutical market. The upcoming results from the Phase 2 EMBRAZE study are pivotal, as they evaluate the combination of apitegromab with tirzepatide in patients with obesity. This study aims to show that the combination can preserve lean mass while achieving comparable weight loss to tirzepatide alone, which could signal a significant advancement in obesity treatment.
Furthermore, Kennedy sees substantial value in Scholar Rock’s lead asset, apitegromab, particularly in its application for spinal muscular atrophy (SMA), which he believes is currently undervalued. While the obesity program has its critics, Kennedy acknowledges the potential for muscle preservation to meet unmet needs in the anti-obesity market. If Scholar Rock or its competitors can demonstrate a clear path to approval, this could enhance the company’s value significantly. Thus, Kennedy’s Buy rating reflects both the promising potential of the EMBRAZE study and the broader opportunities in SMA.