Its 5.4 mln share IPO priced at $14, the mid-point of the $13-$15 expected price range, generating total gross proceeds of $75.6 mln. The lead underwriters on the deal were Jefferies, Cowen, and BMO Capital. Shares opened for trading earlier this morning on the Nasdaq at $14.25.
The company has developed a proprietary platform for the development of monoclonal antibodies that target the signaling proteins related to the target diseases. This approach avoids the historical challenges associated with inhibiting growth factors for therapeutic effect. Its platform has the potential to treat a wide range of serious diseases, including spinal muscular atrophy and other neuromuscular disorders, cancer, fibrosis, and anemia.
The company's lead product candidate is SRK-015, a selective first-in-class inhibitor of the activation of the growth factor myostatin in skeletal muscle for the treatment of spinal muscular atrophy (SMA). Myostatin is a negative regulator of muscle mass expressed primarily in skeletal muscle tissue and a member of the transforming growth factor beta, or TGFb, superfamily. Vertebrate animals that lack the myostatin gene display increased muscle mass and strength relative to their normal counterparts but are otherwise healthy. SRRK believes inhibition of the activation of myostatin may promote a clinically meaningful increase in muscle mass and strength.
In March 2018, Scholar Rock filed an IND with the FDA for SRK-015, and in April 2018, the FDA said its Phase 1 first-in-human clinical trial of SRK-015 may proceed. SRRK plans to initiate a Phase 1 trial in May 2018. The FDA has granted orphan drug designation for SRK-015 for the treatment of SMA.
Its second antibody program is focused on inhibitors of the activation of TGFb1. Increased signaling by TGFb1 is a key driver of a number of disease-relevant processes, including tissue and organ fibrosis, immune system evasion by cancer cells, and bone marrow fibrosis associated with hematological disorders. Historically, selectively targeting TGFb1 has been challenging due to off-target inhibition of other, closely related growth factors, TGFb2 and TGFb3.
Lastly, like most clinical stage biopharmas, SRRK does not really have any financials yet. The company was formed in 2012 and currently has no products approved for commercial sale. It has not generated any product revenue and expects to be unprofitable for the foreseeable future.