Loading... Loading... Raymond James has initiated coverage on Scholar Rock Holding SRRK , supported by the potential value with a couple of key programs utilizing selective myostatin inhibition to preserve muscle loss . The analysis focuses on the potential of their lead program, apitegromab, for Spinal Muscular Atrophy (SMA), which is currently in a Phase 3 trial (SAPPHIRE) with data expected in Q4 2024. Apitegromab benefits from robust Phase 2 data (TOPAZ) and shows promise as an add-on therapy to existing treatments for SMA. The analyst commences coverage of Scholar Rock with a Strong Buy rating and a price target of $30 . Additionally, Scholar Rock is exploring opportunities in the obesity market with SRK-439, a next-generation myostatin inhibitor, which has shown positive preclinical data in preserving lean muscle mass alongside GLP-1s for weight loss. These data showed that SRK-439 maintained lean mass and improved fat mass loss when combined with a GLP-1 receptor agonist (GLP-1 RA; in separate experiments with Novo Nordisk A/S’s NVO semaglutide and liraglutide. SRK-439 treatment also led to incremental lowering of fasting glucose beyond the levels seen with semaglutide alone . A proof-of-concept trial for apitegromab in obesity will start in mid-2024, with results expected in mid-2025, coinciding with the IND filing for SRK-439. The company also has other promising candidates, like SRK-181 targeting latent TGFβ1 in solid tumors, which has shown encouraging results in early trials. Scholar Rock’s valuation appears attractive, considering its pipeline opportunities and favorable risk/reward profile. Given their relevance in sizable markets, the company’s treatments could be appealing for acquisition. The company ended 2023 with approximately $280 million in cash, cash equivalents, and marketable securities, which is expected to fund operations into 2H 2025 . Price Action: SRRK shares are up 15.50% at $17.19 on the last check Thursday. Photo via Shutterstock Loading... Loading...