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Scholar Rock initiated with an Outperform at Leerink

Leerink initiated coverage of Scholar Rock (SRRK) with an Outperform rating and $51 price target The firm notes lead asset apitegromab is in regulatory review as an add-on therapy for spinal muscular atrophy, with September 22nd PDUFA. With 3 approved SMN-targeted therapies as standard of care, apitegromab’s novel MoA offers increased muscle function and mass to counterbalance motor decline seen with approved agents over time. Despite investor nervousness on CDMO concerns ahead of PDUFA, Leerink sees Scholar Rock as one of the most appealing launch stories in its coverage over the next 12-24 months, based on positive channel feedback, flexible regulatory/reimbursement, and the most experienced rare disease commercialization team in its coverage.

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