Scholar Rock climbs after BofA initiates coverage with 'buy' rating

Scholar Rock Holding

09/10/2025 14:53

** Shares of drug developer Scholar Rock SRRK.O rise 3.5% to $40.03

** BofA Global Research initiates coverage with "buy" rating and PT of $53, which represents ~37% upside to stock's last close

** There is a "high unmet need" in spinal muscular atrophy despite approved therapies, which slow neuron loss but do not stop disease progression, says brokerage

** Scholar Rock's therapy, apitegromab, addresses this need by reducing "muscle atrophy by inhibiting myostatin, a protein which causes muscle breakdown, addressing key symptoms of the disease" - BofA

** Brokerage estimates the therapy to record $2 bln in peak sales in 2037

** Even as the U.S. FDA declined to approve the company's filing for the drug due to issues at a third-party manufacturing facility, BofA views this as a "timeline delay rather than as a risk to approval"

** As of last close, shares down 10% YTD

(Reporting by Kamal Choudhury in Bengaluru)

((Kamal.Choudhury@thomsonreuters.com;))