Scholar Rock Reports $74.7 Million Net Loss in Q1 2025, Increases Focus on Apitegromab

Scholar Rock Holding Corporation reported its financial results for the first quarter of 2025, revealing a net loss of $74.7 million, compared to a net loss of $56.9 million for the same period in 2024, marking a 31.4% increase in losses year-over-year. The company's total operating expenses rose to $77.1 million, up from $58.4 million in the prior year, driven primarily by a significant increase in general and administrative expenses, which surged by 85.4% to $28.4 million. Research and development expenses also increased by 13.0% to $48.7 million, reflecting ongoing investments in clinical trials and product development.

In terms of liquidity, Scholar Rock's cash, cash equivalents, and marketable securities decreased to $364.4 million as of March 31, 2025, down from $437.3 million at the end of 2024. The decline was attributed to cash used in operating activities, which amounted to $78.7 million for the quarter, compared to $49.8 million in the same quarter of the previous year. The company reported net cash provided by investing activities of $34.6 million, primarily from transactions involving marketable securities, while financing activities contributed $4.2 million, mainly from stock option exercises.

Strategically, Scholar Rock is advancing its lead product candidate, apitegromab, which is under priority review by the FDA following a successful Phase 3 clinical trial for spinal muscular atrophy (SMA). The company submitted a Biologics License Application (BLA) in January 2025, with a target action date set for September 22, 2025. Additionally, Scholar Rock is expanding its therapeutic focus into cardiometabolic disorders with the development of SRK-439, a novel anti-myostatin monoclonal antibody, and is progressing SRK-181 for cancer treatment.

Operationally, the company has seen an increase in employee-related costs, reflecting a growing workforce as it prepares for potential commercialization of its products. As of March 31, 2025, Scholar Rock had 94.9 million shares outstanding, an increase from 93.8 million shares at the end of 2024. The company anticipates continued significant operating losses as it invests in research and development, with expectations to maintain sufficient cash reserves to fund operations through at least 2027. Looking ahead, Scholar Rock aims to initiate a commercial launch of apitegromab in the U.S. in late 2025, pending regulatory approval.