NASDAQ$SRRK

Scholar Rock Holding Corporation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported financial results for the second quarter ended June 30, 2020.

Scholar Rock reported a net loss of $19.3 million, or $0.65 per share, for the quarter ended June 30, 2020. Revenue for the quarter was $3.9 million, related to the Gilead collaboration. The company's cash, cash equivalents, and marketable securities totaled $141.2 million as of June 30, 2020.

  • On track to report interim efficacy and safety results from TOPAZ Phase 2 clinical trial of SRK-015 in patients with Type 2 and Type 3 Spinal Muscular Atrophy (SMA) in 4Q20.
  • Enrollment expected to advance to combination treatment of SRK-181 and an approved anti-PD-(L)1 therapy in Part A of DRAGON Phase 1 clinical trial in 3Q20; update on dose escalation expected in 4Q20.
  • Tony Kingsley appointed as President and CEO and Ted Myles as CFO and Head of Business Operations.
  • Company hosting conference call at 8am ET to discuss financial results and introduce newest members of management

Headline financials

Total Revenue

$3.9M

Previous: $5.04M-22.6%
EPS (adj)

-$0.65

Previous: -$0.48-35.4%
Capital Expenditures

-$283K

Previous: -$1.28M+77.9%
Free Cash Flow

-$19.6M

Previous: -$13.8M-41.7%
Net Income

-$19.3M

Previous: -$12.5M-53.9%
Operating Income

-$19.5M

Previous: -$13.4M-45.4%
Cash & Equivalents

$115M

Previous: $114M+1.2%
Total Assets

$156M

Previous: $197M-20.6%

Revenue & EPS history

Scholar Rock · Revenue · Quarterly

$3.9M

Q2 2020-22.6%vs Q2 2019
Beat estimate in 8 of 13 quarters(62%)
ActualEstimate

Forward guidance

Scholar Rock is on track to report interim efficacy and safety data in the fourth quarter of 2020 for SRK-015. Enrollment is expected to advance in the DRAGON Phase 1 trial for SRK-181 in the third quarter of 2020, with an update on dose escalation expected in the fourth quarter of 2020.

Tailwinds

  • On track to report interim efficacy and safety results from TOPAZ Phase 2 clinical trial of SRK-015 in patients with Type 2 and Type 3 Spinal Muscular Atrophy (SMA) in 4Q20
  • Enrollment expected to advance to combination treatment of SRK-181 and an approved anti-PD-(L)1 therapy in Part A of DRAGON Phase 1 clinical trial in 3Q20; update on dose escalation expected in 4Q20
  • High level of engagement of trial investigators and patients
  • High rate of enrollment into the 12-month extension study for SRK-015 TOPAZ trial
  • Pleased with the progress to date enrolling patients in our SRK-181 DRAGON trial

Headwinds

  • Three patients missed three doses of SRK-015 due to COVID-19-related restrictions at their trial site, and their 6-month assessments will be excluded from the interim analysis.
  • One patient discontinued from the trial for reasons unrelated to the study drug and which occurred prior to the COVID-19 pandemic.
  • There may be further impacts on the timing of future doses and assessments for patients in the trial as the effects of the COVID-19 pandemic continue to evolve.
  • Net loss of $19.3 million or $0.65 per share compared to a net loss of $12.5 million or $0.48 per share for the quarter ended June 30, 2019.
  • Decrease in cash, cash equivalents, and marketable securities from $157.4 million as of December 31, 2019 to $141.2 million as of June 30, 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+3.6%

Avg return

Earnings day

+3.0%

Avg return

5 days after

+3.5%

Avg return

30 days after

58%

18 / 31 earnings

Positive

+24.6%

Q4 2023

Best reaction

-7.6%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.4%+4.4%-6.1%
Q4 2025+2.0%+4.2%+15.0%
Q3 2025+24.1%+32.0%+55.9%
Q2 2025-6.1%-14.9%-15.1%
Q1 2025-2.6%-3.9%+3.3%
Q4 2024-2.9%+0.2%-11.3%
Q3 2024-2.7%-5.9%+48.0%
Q1 2024-3.7%-11.4%-37.4%
Q4 2023+24.6%+24.2%+5.7%
Q3 2023-1.8%-17.5%+44.2%
Q2 2023+6.3%+11.6%-3.6%
Q1 2023+4.4%-0.1%-13.6%
Q4 2022+7.2%-1.9%-15.7%
Q3 2022+10.9%+0.2%+1.5%
Q2 2022+6.9%+32.9%+5.2%
Q1 2022+7.3%-5.2%-9.7%
Q4 2021-5.1%-9.5%-8.6%
Q3 2021+16.8%+24.2%-10.4%
Q2 2021+4.8%+7.5%+4.6%
Q1 2021-2.4%+0.1%+10.6%
Q4 2020+16.8%+21.4%-40.2%
Q3 2020-1.0%+2.8%+7.7%
Q2 2020+3.9%-4.1%+5.0%
Q1 2020-4.8%+6.9%+2.2%
Q4 2019+4.3%+9.4%-1.1%
Q3 2019-7.6%-14.5%+17.0%
Q2 2019+0.8%+11.9%+19.4%
Q1 2019+6.2%+8.6%-4.9%
Q4 2018+9.8%+2.3%-7.4%
Q3 2018+2.0%-10.0%-1.6%
Q2 2018-6.7%-11.9%+51.0%
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017

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