NASDAQ$SRRK

Scholar Rock Holding Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Scholar Rock reported its full year financial results and highlighted business progress.

Scholar Rock reported a net loss of $165.8 million for the full year ended December 31, 2023. The company is on track to release topline data for its Phase 3 SAPPHIRE trial of apitegromab in spinal muscular atrophy in the fourth quarter of 2024 and to initiate a Phase 2 proof-of-concept trial with apitegromab in combination with a GLP-1 RA in mid-2024. The company ended the year with approximately $280 million in cash, cash equivalents, and marketable securities.

  • Pivotal Phase 3 SAPPHIRE trial in patients with Spinal Muscular Atrophy is on track to report topline data in 4Q 2024.
  • FDA clearance of IND application was announced to initiate Phase 2 proof-of-concept trial with apitegromab to treat obesity; expected to commence in mid-2024.
  • Preclinical data was presented supporting potential benefit of SRK-439 to preserve lean muscle mass as part of healthier weight management at Keystone Symposia.
  • Ended 2023 with approximately $280 million in cash, cash equivalents, and marketable securities, which is expected to fund operations into 2H 2025

Headline financials

Total Revenue

$0.00

Previous: $33.2M-100.0%
EPS (adj)

-$0.50

Previous: -$0.46-8.7%
Capital Expenditures

$0.00

Previous: $117K-100.0%
Free Cash Flow

-$37.3M

Previous: -$29M-28.7%
Net Income

-$166M

Previous: -$135M-23.3%
Operating Income

-$48M

Previous: -$134M+64.3%
Gross Profit

-$672K

No prior period
R&D Expense

$34.3M

No prior period
Stock-Based Comp

$6.95M

Previous: $6.17M+12.7%

Revenue & EPS history

Scholar Rock · Revenue · Quarterly

$0

Q4 2023-100%vs Q4 2022
Beat estimate in 0 of 2 quarters(0%)
ActualEstimate

Forward guidance

Scholar Rock is focused on advancing its pipeline, with key milestones expected in the near term. The company anticipates releasing topline data from the Phase 3 SAPPHIRE trial in Q4 2024 and initiating a Phase 2 trial for apitegromab in combination with a GLP-1 RA in mid-2024. SRK-439, a novel preclinical myostatin inhibitor for obesity, is moving toward IND.

Tailwinds

  • On track to release topline data for Phase 3 SAPPHIRE trial in SMA in Q4 2024.
  • Phase 2 proof-of-concept trial with apitegromab in combination with a GLP-1 RA expected to commence in mid-2024.
  • SRK-439, a novel preclinical myostatin inhibitor for obesity, moving toward IND.
  • Apitegromab is the only muscle-targeted therapy candidate to show clinical proof-of-concept in SMA.
  • Capital raise in the fourth quarter extended cash runway.

Headwinds

  • Apitegromab has not been approved for any use by the US FDA or any other health authority, and its safety and efficacy have not been established.
  • The efficacy and safety of SRK-439 have not been established and SRK-439 has not been approved for any use by the FDA or any other regulatory agency.
  • Clinical data from earlier trials may not be predictive of results from future trials.
  • Dependence on third parties for development and manufacture of product candidates.
  • Competition from third parties developing products for similar uses.

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 Q4 2023

Historical avgQ4 2023

+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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