Biotech Fund Doubles Down With $49 Million Scholar Rock Buy as Shares Climb 26%
Key Points
Redmile Group added 1,316,390 shares of Scholar Rock Holding Corporation in the fourth quarter; the estimated trade value was $49.37 million based on quarterly average prices.
Meanwhile, the quarter-end position value rose by $84.58 million, reflecting both new purchases and stock price changes.
The post-trade stake totaled 5,220,846 shares valued at $229.98 million.
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Redmile Group disclosed a buy of 1,316,390 shares of Scholar Rock Holding Corporation (NASDAQ:SRRK) in a February 17, 2026, SEC filing, with the estimated transaction value at $49.37 million based on quarterly average pricing.
What happened
According to a SEC filing dated February 17, 2026, Redmile Group, LLC increased its position in Scholar Rock Holding Corporation by 1,316,390 shares during the fourth quarter. The estimated trade size was $49.37 million based on the average share price for the quarter. The quarter-end value of the position increased by $84.58 million, which reflects both the additional shares acquired and the impact of market price movements.
What else to know
- Redmile Group’s buy lifts its stake in Scholar Rock Holding Corporation to 16.94% of the fund’s 13F reportable assets under management.
- Top holdings after the filing:
- NASDAQ:SRRK: $229.98 million (16.9% of AUM)
- NASDAQ:KRYS: $167.08 million (12.3% of AUM)
- NASDAQ:NRIX: $153.54 million (11.3% of AUM)
- NASDAQ:STOK: $128.04 million (9.4% of AUM)
- NASDAQ:IMNM: $122.83 million (9.0% of AUM)
- As of February 17, 2026, shares of Scholar Rock Holding Corporation were priced at $46.45, up 25.7% over the past year and outperforming the S&P 500 by 13.39 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close 2026-02-17) | $46.45 |
| Market Capitalization | $4.78 billion |
| Net Income (TTM) | $-353.43 million |
| One-Year Price Change | 25.71% |
Company snapshot
- Scholar Rock Holding develops biopharmaceutical products targeting serious diseases, including Apitegromab for spinal muscular atrophy and SRK-181 for cancer therapy resistance.
- The firm operates a research-driven model focused on discovering and advancing protein growth factor inhibitors, with revenue potential from product commercialization and strategic collaborations.
- It serves patients with neuromuscular disorders, cancer, and fibrotic diseases, targeting healthcare providers and biopharmaceutical partners.
Scholar Rock Holding Corporation is a clinical-stage biotechnology company specializing in the discovery and development of therapies that modulate protein growth factor signaling. The company leverages a proprietary platform to address unmet medical needs in neuromuscular, oncological, and fibrotic indications. Strategic collaborations and a focused pipeline position Scholar Rock to capitalize on innovative science in high-impact therapeutic areas.
What this transaction means for investors
This purchase signals a willingness to lean into that volatility rather than trim around it. Scholar Rock enters 2026 with a clear catalyst path. According to an announcement last month, the company plans a Biologics License Application resubmission for apitegromab in spinal muscular atrophy and anticipates a potential U.S. launch following approval this year. It also has approximately $365 million in cash as of December 31, with runway projected into 2027. That balance sheet reduces near-term dilution risk, a key consideration for long-term biotech investors.
Unlike diversified portfolios, this fund concentrates heavily in clinical-stage names. Scholar Rock now represents roughly 17% of assets, alongside other high-conviction biotech positions. That concentration amplifies both upside and binary risk.
Shares are up about 26% over the past year, modestly beating the broader market and suggesting investors are already assigning value to regulatory progress and pipeline depth. Beyond apitegromab, programs in FSHD and the SRK-439 myostatin inhibitor expand optionality.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Krystal Biotech. The Motley Fool has a disclosure policy.
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