B of A starts Scholar Rock at Buy

 BofA Securities initiated coverage on Scholar Rock (NASDAQ:SRRK) with a Buy rating and a price target of $53.00 on Thursday. 

The research firm is bullish on Scholar Rock’s development of apitegromab (api™), an intravenous antibody therapy designed as an adjunctive treatment for spinal muscular atrophy (SMA), a rare genetic neuromuscular disease that primarily affects children. With a market capitalization of $3.72 billion and a healthy current ratio of 6.33, the company appears well-positioned to advance its development programs. 

BofA Securities noted that while current approved SMA therapies such as Spinraza, Evrysdi, and Zolgensma help reduce progressive motor neuron loss, they are not curative and disease progression continues, leaving significant unmet medical needs. 

The firm highlighted that apitegromab works through a different mechanism than existing treatments by inhibiting myostatin, a protein that causes muscle breakdown, thereby potentially reducing muscle atrophy in SMA patients.

This approach directly addresses key symptoms of the disease, complementing existing therapies that focus on preventing further motor neuron deterioration, according to BofA Securities’ analysis.

https://www.investing.com/news/analyst-ratings/bofa-securities-initiates-coverage-on-scholar-rock-stock-with-buy-rating-93CH-4279243