Director Sells 11,136 Shares of SRRK, a Stock Up 330% in Past Year

On July 18, 2025, Director Jeffrey S. Flier publicly announced that he had sold 11,136 shares of Scholar Rock (SRRK) through a standard stock exchange deal.

Transaction summary

Metric	Value
Shares traded	11,136
Transaction value	$445,688.33
Post-transaction shares	24,070
Post-transaction value	$962,318.60

Key questions

What’s the relationship between this latest transaction and Jeffrey S. Flier’s past insider transactions in 2025? In 2025, it marks his fourth disclosed transaction, reflecting an uptick in activity and a shift towards selling rather than buying, with a typical trade size of around 9,384 shares.

What’s the importance of the transaction timing in relation to share price and performance? The transaction was made at $40.02 per share, which is a 2.67% discount compared to the closing price of $41.12 on July 22, 2025. This sale took place after a significant one-year total return of 346%, as stated in the filing, suggesting that it was made following a period of substantial price growth.

Is it possible to examine how this recent sale aligns with the overall pattern of trading activity by Jeffrey S. Flier over a two-year period? During this timeframe, his transactions changed from occasional net purchases (2023-2024) to more frequent net sales in 2025, with only one trade per year in 2023 and 2024, and four trades in 2025. This latest sale follows this trend, and the average time between transactions has decreased from approximately 350 days initially to just 19 days recently.

Company overview

Metric	Value
Market capitalization	$3.77 billion
Current price	$39.71
Net income (TTM)	($246.29 million)
One-year price change	330%

Company snapshot

Scholar Rock specializes in creating unique pharmaceutical solutions, including apitegromab for spinal muscular atrophy and SRK-181 for cancer, while focusing on conditions like neuromuscular disorders, cancer, and fibrosis. Their approach is research-based, aiming to create value through drug discovery, clinical trials, and strategic partnerships. One such collaboration is with Gilead Sciences, aimed at developing therapies for fibrotic diseases.

Scholar Rock is a biotechnology firm that’s currently at the clinical stage, specializing in research and development of treatments that can control protein growth signaling to combat serious illnesses. By using unique scientific knowledge, they create a distinct pipeline, targeting diseases with high potential for both medical impact and commercial success. Scholar Rock also forms strategic partnerships and holds late-stage clinical assets, making them competitive in lucrative therapeutic markets.

Foolish take

At the current moment, Scholar Rock operates as a biotech company in its clinical stage, which means it’s not yet generating revenue. Each quarter, it experiences substantial financial losses – a common occurrence for companies in this phase of development. Despite this, Scholar Rock boasts a strong financial position and sufficient cash reserves to support the ongoing advancement of its drug projects for an extended period.

The pharmaceutical firm boasts several promising and financially rewarding drugs under development. One particularly intriguing prospect is apitegromab, a drug designed to help patients using GLP-1 analogues like Wegovy preserve their muscle mass. These GLP-1 drugs are highly effective and frequently prescribed, not just for weight loss but also for various other health conditions. However, one downside of weight loss in patients is the loss of muscle mass, an undesirable outcome that most people aim to prevent. Preliminary findings from apitegromab’s Phase 2 trial suggest a reduction of 54.9% in muscle mass loss.

This market presents a massive growth opportunity, even with the substantial increase in share prices recently. I believe there’s still room for profitability in this case. However, do remember that investing in this drug’s development comes with a high level of risk, and success is never guaranteed.

Glossary

Insider activity: Trades or transactions made by a company’s executives, directors, or significant shareholders.
Open market transaction: Buying or selling securities on a public exchange, not through private or prearranged deals.
Net selling: When an insider sells more shares than they buy over a period.
Net accumulative: A pattern where an insider buys more shares than they sell, increasing their holdings.
Full liquidation: Selling all shares of a particular security, resulting in zero ownership.
Equity position: The amount of ownership an individual or entity holds in a company through shares.
Total return: The investment’s price change plus all dividends and distributions, assuming those payouts are reinvested.
Median trade size: The middle value in a list of trade sizes, used to measure the typical transaction size.
Clinical-stage biotechnology company: A biotech firm focused on developing drugs that are currently being tested in human clinical trials.
Strategic collaborations: Partnerships between companies to jointly develop products or technologies, often sharing risks and rewards.
Proprietary science: Unique scientific methods or technologies owned and developed by a specific company.
TTM: The 12-month period ending with the most recent quarterly report.

2025-07-23 23:56