H.C. Wainwright increased its price target on Scholar Rock (NASDAQ:SRRK) to $58.00 from $44.00 and reiterated a Buy rating, a move the firm says is supported by positive input from neurologists and an assessment of the company’s commercial-readiness work streams. The new target sits above Scholar Rock’s recent trading level of $44.29 and near the lower boundary of analyst targets that range from $42 to $60, according to the data cited.
The brokerage highlighted that feedback from key opinion leaders in neurology reinforced confidence in the anticipated launch trajectory for apitegromab, Scholar Rock’s lead candidate. Physicians involved in the discussions reportedly viewed the company’s recent exchanges with the U.S. Food and Drug Administration and updates on manufacturing remediation as clarifying actions that reduced uncertainty rather than creating additional concerns.
H.C. Wainwright pointed to Scholar Rock’s parallel supply-chain approach as a material element in lowering the risk of early commercial execution. In addition, the firm flagged the company’s ramped-up field engagement and disease education initiatives as highly visible and increasingly effective in shaping the market conversation. Those educational efforts, the analyst noted, are positioning spinal muscular atrophy (SMA) as a chronic muscle disease rather than solely a neuronal disorder, a reframe the firm views as likely to support proactive uptake of apitegromab at launch.
InvestingPro data referenced by the analyst shows Scholar Rock carrying a market capitalization of $4.52 billion and a current ratio of 6.3, indicating liquid assets exceed short-term obligations. H.C. Wainwright presented these balance-sheet metrics as favorable context for a development-stage company preparing for commercial roll-out, even as analysts do not expect the company to be profitable this year—a common profile for late-stage biotech firms.
When asked about the impact of the company’s recent Complete Response Letter, H.C. Wainwright reported that KOLs responded with a "resounding no" when queried about whether the CRL altered their view on the program. That feedback helped support the decision to hold the Buy rating while raising the price target.
Other analysts and firms have been active on Scholar Rock recently. UBS initiated coverage with a Buy rating and a $60 price target. Wolfe Research also commenced coverage, assigning an Outperform rating and a $42 price target. BMO Capital increased its target from $45 to $50 while maintaining an Outperform rating. Cantor Fitzgerald reiterated an Overweight rating and expressed continued confidence in the approval prospects for apitegromab.
On the manufacturing front, Scholar Rock disclosed that Catalent Indiana, a contract manufacturing partner, received a warning letter from the FDA following an earlier inspection classified as "official action indicated." Despite that regulatory action relating to the manufacturing partner, Scholar Rock intends to resubmit its biologics license application for apitegromab and is targeting a potential U.S. launch in 2026 if regulatory approval is granted. The company is also accelerating the technology transfer of commercial capacity to a second facility to be prepared for future production needs.
H.C. Wainwright emphasized that several operational choices - the parallel supply chain, expanded field engagement, and education efforts - are meaningful contributors to de-risking the early phases of a commercial launch. The firm also noted that while the company carries moderate levels of debt, the balance-sheet liquidity reflected in the current ratio provides a buffer as Scholar Rock prepares for commercialization.
Overall, the analyst upgrade reflects a convergence of positive KOL sentiment, strategic manufacturing and supply-chain actions, and recent analyst coverage that together underpin the higher valuation target. The company continues to address regulatory and manufacturing considerations while pursuing the next regulatory submission and commercial readiness activities ahead of a potential 2026 launch.
Key points
- H.C. Wainwright raised its price target to $58 from $44 and maintained a Buy rating on Scholar Rock - sectors impacted: biotech, healthcare.
- Positive KOL feedback and an articulated parallel supply-chain strategy are cited as primary reasons for increased confidence in apitegromab’s launch trajectory - sectors impacted: pharmaceuticals, supply chain/contract manufacturing.
- Market and liquidity metrics cited include a $4.52 billion market capitalization and a current ratio of 6.3, indicating liquid assets exceed short-term obligations - sectors impacted: equity markets, biotech financing.
Risks and uncertainties
- Manufacturing and regulatory risk: Catalent Indiana received an FDA warning letter after a prior inspection classified as "official action indicated," introducing execution risk in production - impacts contract manufacturing and pharmaceutical supply chains.
- Regulatory approval uncertainty: The company plans to resubmit its biologics license application and a U.S. launch is contingent on approval, currently targeted for 2026 - impacts biotech commercialization timelines and investor returns.
- Profitability timeline: Analysts do not expect Scholar Rock to be profitable this year, reflecting typical cash-burn dynamics for late-stage biotech companies - impacts capital markets and funding needs for development-stage firms.