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Jun 30, 2023

Scholar Rock Q2 2023 Earnings Report

Scholar Rock reported financial results and corporate updates.

Key Takeaways

Scholar Rock reported a net loss of $37.9 million for the second quarter of 2023. The company's cash, cash equivalents, and marketable securities were approximately $249 million as of June 30, 2023, expected to fund operations into 2025.

Presented 36-month apitegromab extension data from Phase 2 TOPAZ trial, demonstrating long-term improvement of motor function.

Pivotal Phase 3 SAPPHIRE trial evaluating apitegromab is on track to complete enrollment in Q3 2023, with top-line data expected in 2H 2024.

Clinical and biomarker update from the Part B portion of the Phase 1 DRAGON trial of SRK-181 in solid tumors is anticipated in 2H 2023.

Cash, cash equivalents, and marketable securities were approximately $249 million as of June 30, 2023, expected to fund operations into 2025.

EPS
-$0.47
Previous year: -$1.06
-55.7%
R&D Expense
$26.9M
Previous year: $32.1M
-16.2%
G&A Expense
$12.2M
Previous year: $11.1M
+10.3%
Cash and Equivalents
$249M
Previous year: $371M
-32.9%
Free Cash Flow
-$32.6M
Previous year: -$35.2M
-7.5%
Total Assets
$285M
Previous year: $424M
-32.8%

Scholar Rock

Scholar Rock

Forward Guidance

Scholar Rock anticipates several important milestones with their current cash runway.

Positive Outlook

  • Completion of enrollment for Phase 3 SAPPHIRE clinical trial expected in Q3 2023.
  • Top-line data from SAPPHIRE trial expected in 2H 2024.
  • Potential commercial product launch in 2025, if SAPPHIRE is successful and approved.
  • Biomarker and clinical updates from Part B of the DRAGON trial in the second half of 2023.
  • Cash runway is expected to fund operations into 2025.

Challenges Ahead

  • Clinical trial data may be inconsistent with future trials.
  • Dependence on third parties for development and manufacture of product candidates.
  • Competition from third parties developing products for similar uses.
  • Uncertainties regarding regulatory approval.
  • Impacts of public health pandemics such as COVID-19 on business operations and expectations.