By Colin Kellaher
Shares of Scholar Rock Holding Corp. rose nearly 20% on Tuesday after the biopharmaceutical company unveiled a restructuring plan focused on its clinical-stage assets.
The Cambridge, Mass., company said it plans to prioritize its research-and-development activities to support its apitegromab program in spinal muscular atrophy and its SRK-181 program for the treatment of patients with solid tumors.
As part of the restructuring, Scholar Rock said it will cut 39 jobs, or about 25% of its staff, and curtail planned hiring. The company also plans to scale back research activities related to earlier stage programs.
Scholar Rock, which had about $210 million in cash, equivalents and marketable securities at the end of the first quarter, said it expects the changes to extend its cash runway into the fourth quarter of 2023.
In a research note, analysts Do Kim and Ikechukwu Oji at Piper Sandler said they believe the restructuring is a precautionary move to conserve cash due to the uncertain capital markets environment and not a reflection of pipeline concerns.
The Piper analysts, with an “overweight” rating on Scholar Rock shares, cut their price target on the stock to $28 from $56 after revising their model to reflect the restructuring and a potential SRK-181 partnership.
Scholar Rock shares were recently up 19% to $6.20.
Write to Colin Kellaher at [email protected]
Credit: www.marketwatch.com /