Scholar Rock Shares Surge Following FDA Meeting, Despite Q3 Earnings Disappointment
Earnings Report Overview: Scholar Rock (SRRK) reported Q3 2025 earnings of -90 cents per share, missing Wall Street's estimate of -84 cents, and did not generate any revenue during the quarter, which was also expected to be $56,000.
FDA Meeting Impact: The stock's rally of 22.78% was influenced by a recent constructive meeting with the FDA regarding its SMA program, with plans for facility reinspection by year-end and a BLA resubmission anticipated in 2026.
Stock Performance: Despite the recent increase, SRRK stock is down 14.58% year-to-date but has seen a 13.51% rise over the past year, with trading volume significantly lower than the three-month average.
Analyst Ratings: The consensus rating for Scholar Rock is Strong Buy, based on 11 Buy ratings, with an average price target of $46.67, indicating a potential upside of 27.37% for the stock.
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- Equity Incentive Plan: Scholar Rock has granted a total of 114,668 shares in equity awards to seven new employees, comprising 64,226 shares in stock options and 50,442 shares in restricted stock units, aimed at attracting high-quality talent to the company.
- Option Exercise Price: The granted stock options have an exercise price of $47.85 per share, matching the closing price on February 9, 2026, a strategy that helps align employee incentives with market performance and enhances long-term motivation.
- Vesting Schedule: 25% of the stock options will vest on the first anniversary of each employee's start date, with the remaining 75% vesting in 12 equal quarterly installments, while the restricted stock units will vest in four equal annual installments, ensuring continued employee service.
- Company Background: Scholar Rock focuses on developing treatments for spinal muscular atrophy and other rare neuromuscular diseases, leveraging its proprietary platform in muscle growth factor modulation to create new therapeutic possibilities for patients.
- Executive Stock Sale: On January 22, 2026, Scholar Rock's Chief Scientific Officer Mo Qatanani sold 14,898 shares for approximately $695,937, indicating executive activity in the market and raising investor interest in the company's future performance.
- Ownership Proportion Change: Following this transaction, Qatanani's direct ownership decreased to 85,660 shares, representing only 21% of total holdings, which may affect investor confidence in his commitment to the company's future.
- Trading Plan Context: The stock sale was executed under a Rule 10b5-1 trading plan, indicating that the transaction was pre-scheduled rather than a spontaneous decision, which mitigates potential negative interpretations of insider selling.
- Future Product Outlook: Scholar Rock plans to launch its key product candidate, apitegromab, in 2026, and if approved by the FDA and other global agencies, it could significantly enhance the company's market position in treating spinal muscular atrophy, thereby increasing its investment appeal.
- Share Sale Transaction: Mo Qatanani, Chief Scientific Officer of Scholar Rock, sold 14,898 shares on January 22, 2026, for approximately $695,938 at a weighted average price of $46.71 per share, representing a 14.82% reduction in his direct holdings, leaving him with 85,660 shares, or 0.08% of the outstanding shares.
- Trading Plan Context: The sale was executed under a Rule 10b5-1 trading plan, indicating that it was not a voluntary action by Qatanani but rather a pre-scheduled transaction designed to ensure compliance and mitigate insider trading risks.
- Future Product Plans: Scholar Rock aims to launch its key product candidate, apitegromab, in the U.S. and European markets in 2026, which is touted as the world's first muscle-targeted treatment for spinal muscular atrophy (SMA); success in this endeavor could significantly enhance the company's market outlook.
- Financial Status and Market Performance: Despite only a 2% stock increase in 2025 and ongoing net losses, the potential success of the apitegromab project could make SRRK a more attractive investment option, likely drawing increased investor interest.
- Inducement Awards: Scholar Rock granted a total of 35,200 shares of common stock to two new employees, comprising 20,400 shares in stock options and 14,800 shares in restricted stock units, aimed at attracting top talent to the company.
- Option Exercise Price: The granted stock options have an exercise price of $43.56 per share, matching the closing price of Scholar Rock's common stock on January 12, 2026, ensuring that new hires' interests are closely aligned with the company's stock performance.
- Vesting Schedule: 25% of the stock options will vest on the first anniversary of each employee's start date, with the remaining 75% vesting in 12 equal quarterly installments, while the restricted stock units will vest in four equal annual installments, ensuring ongoing employee commitment to the company.
- Plan Background: This grant is made under the company's inducement equity plan adopted on June 16, 2022, designed to attract individuals who were not previously employed by Scholar Rock, in compliance with Nasdaq listing rules.
Insider Purchase at Scholar Rock: Srinivas Akkaraju bought 29,599 shares of Scholar Rock Holding (SRRK) for $1.18M at $39.92 each, seeing a 13.5% gain during the trading session.
Previous Investment by Akkaraju: Prior to this purchase, Akkaraju had acquired $18.81M worth of shares at $37.58 each within the last year.
Adagio Medical Holdings CEO Purchase: Todd Usen, CEO of Adagio Medical Holdings, purchased 207,315 shares for $225,973 at $1.09 each, while the stock was down about 2.5% on the day.
Market Performance: Scholar Rock Holding's stock was up approximately 0.4% on Wednesday, with SRRK reaching a high of $45.32 during trading.
- Equity Incentive Plan: Scholar Rock granted a total of 7,800 equity awards to two new employees, including 4,457 inducement stock options and 3,343 restricted stock units, aimed at attracting top talent and enhancing employee loyalty.
- Option Exercise Price: The inducement stock options have an exercise price of $45.25, equal to the closing price of Scholar Rock's common stock on December 8, 2025, which is designed to incentivize employees to realize the company's value growth in the future.
- Vesting Schedule: 25% of the inducement stock options will vest on the first anniversary of each employee's start date, with the remaining 75% vesting in 12 equal quarterly installments, while the restricted stock units will vest in four equal annual installments, ensuring long-term service and contributions from employees.
- Company Background: Scholar Rock focuses on developing treatments for spinal muscular atrophy and other rare neuromuscular diseases, and as a global leader in myostatin biology, the company is committed to creating new therapeutic possibilities through its innovative anti-myostatin program.








