Scholar Rock Holding Corp (NASDAQ:) director Srinivas Akkaraju has recently sold a significant amount of company stock, transactions that were publicly filed on October 7, 2024. The sales, which took place on the same day, amounted to a total value of over $34 million, with share prices ranging from $27.50 to $32.50.
According to the filing, three separate transactions were conducted involving the sale of Scholar Rock’s common stock. In the first transaction, 510,000 shares were sold at $27.50 per share. Another set of 510,000 shares were sold at $30 per share in the second transaction. The final transaction consisted of 155,713 shares sold at $32.50 per share. All shares sold were held indirectly by Akkaraju through Samsara BioCapital, L.P., as indicated in the footnotes of the filing.
The transactions were executed pursuant to a Rule 10b5-1 trading plan, which had been previously established on June 10, 2024. Rule 10b5-1 allows company insiders to set up a predetermined plan to sell company stocks, providing them with a defense against potential accusations of insider trading.
A footnote in the filing also clarifies that the shares sold were held by Samsara BioCapital LP (“Samsara LP”), and while Akkaraju is a managing member of Samsara BioCapital GP, LLC, the general partner of Samsara LP, he disclaims beneficial ownership of these shares except to the extent of his pecuniary interest therein.
After the sales, the remaining holdings of shares owned by Samsara LP were not disclosed in the filing, except for a separate holding of 13,500 shares of common stock that Akkaraju owns directly.
These transactions represent a notable change in the ownership structure for Scholar Rock and could be of interest to investors tracking insider activity within the company. Scholar Rock, a biopharmaceutical company, is known for its focus on the discovery and development of innovative medicines for the treatment of serious diseases, including cancer and fibrosis.
In other recent news, Scholar Rock has made significant strides in its drug development programs. The biopharmaceutical company recently announced a public offering aimed at raising $275 million, with the intention of funding various corporate requirements including the commercialization of apitegromab. This follows the positive results from its Phase 3 SAPPHIRE clinical trial, which showed a statistically significant improvement in motor function in patients treated with apitegromab. Analysts from TD Cowen and Truist Securities have maintained a Buy rating on Scholar Rock, citing these strong trial results.
The company also announced the appointment of Beth Shafer, Ph.D., as Chief Business Officer, who will be responsible for steering the company’s long-term corporate and business development strategy. Scholar Rock is making progress with its apitegromab EMBRAZE study in obesity, with the initial data now expected in the second quarter of 2025. These are recent developments in Scholar Rock’s ongoing efforts to bring new treatments to market.
InvestingPro Insights
The recent stock sales by Scholar Rock Holding Corp’s director Srinivas Akkaraju align with several key metrics and trends highlighted by InvestingPro. The company’s stock has shown remarkable performance, with InvestingPro data indicating a 365.13% price total return over the past year and a significant 360.13% return in just the last week. This exceptional growth trajectory may have influenced the timing of the insider sales.
InvestingPro Tips reveal that Scholar Rock is “trading near its 52-week high” and has experienced “strong returns over the last month, three months, and five years.” These factors suggest a potentially opportune moment for insiders to realize gains, which could explain the substantial stock sales by Akkaraju.
However, investors should note that Scholar Rock is “quickly burning through cash” and “suffers from weak gross profit margins,” according to InvestingPro Tips. The company’s financial health presents a mixed picture, as it “holds more cash than debt on its balance sheet” but is “not profitable over the last twelve months.” These insights provide context to the insider sales and may be crucial for investors evaluating the company’s long-term prospects.
For a more comprehensive analysis, InvestingPro offers 15 additional tips for Scholar Rock, providing a deeper understanding of the company’s financial position and market performance.
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