Scholar Rock Stock Is Still Down 40% From 2021 Highs — And One Investor Just Walked Away

New York City-based Commodore Capital fully exited its position in Scholar Rock Holding Corporation (NASDAQ:SRRK), selling approximately 1.5 million shares in the third quarter, according to a November 14 SEC filing. The trade represented a net position change of about $51 million.

What Happened

According to a filing released by the U.S. Securities and Exchange Commission on November 14, Commodore Capital sold its entire position in Scholar Rock Holding Corporation during the third quarter, eliminating a stake that was previously nearly 1.5 million shares. The estimated transaction value, based on quarterly average prices, was $51.4 million.

What Else to Know

Top holdings after the filing:

• NASDAQ:MRUS: $331.9 million (16.2% of AUM)
• NASDAQ:NUVL: $121.1 million (5.9% of AUM)
• NASDAQ:XENE: $108.4 million (5.3% of AUM)
• NASDAQ:COGT: $104.1 million (5.1% of AUM)
• NASDAQ:ELVN: $96.1 million (4.7% of AUM)

As of Wednesday, shares of Scholar Rock were priced at $41.08, up 8% over the past year and underperforming the S&P 500, which is up about 13% in the same period. The position was previously about 3.6% of the fund's AUM as of the prior quarter.

Company Overview

Company Snapshot

• Scholar Rock develops and advances novel biopharmaceutical products, including Apitegromab for spinal muscular atrophy and SRK-181 for cancer, targeting diseases driven by protein growth factor signaling.
• The company operates a research-driven business model, generating value through proprietary drug discovery, clinical development, and strategic collaborations such as its agreement with Gilead Sciences for fibrotic disease therapies.
• Scholar Rock serves patients with serious diseases, focusing on neuromuscular disorders, cancer, and fibrosis, through partnerships with healthcare providers and specialty clinics.

Scholar Rock Holding Corporation is a biotechnology company focused on developing innovative therapeutics for serious diseases where protein growth factor signaling is a key driver. The company leverages proprietary expertise in targeting latent growth factors to address unmet medical needs, with a pipeline spanning neuromuscular, oncology, and fibrotic indications. Strategic collaborations and a robust clinical development program underpin its competitive position in the biopharmaceutical sector.

Foolish Take

For long-term investors, a full exit from a fast-moving biotech is always worth examining—especially when the underlying company is approaching a major regulatory milestone. Scholar Rock’s pipeline is advancing, but its apitegromab BLA was rejected by the FDA in September, and the company's financial profile shows a company investing heavily ahead of a potential 2026 launch, which helps explain why one longtime holder may have stepped aside.

Commodore sold its entire position during the third quarter, a move that eliminated roughly 1.5 million shares and reflected an estimated $51.4 million shift in value. The position previously represented about 3.6% of fund assets—meaning this wasn’t a small trim but a decisive pivot. The exit comes as Scholar Rock prepares to resubmit its apitegromab biologics license application following a "constructive" FDA meeting on Nov. 12, where Novo Nordisk’s Catalent unit confirmed remediation progress and anticipated reinspection readiness by year-end.

Scholar Rock is also investing aggressively ahead of commercialization. Q3 operating expenses jumped to $103.6 million from $64.8 million last year, driven by launch preparation and higher personnel costs, pushing the quarterly net loss to $102.2 million. Still, with $369.6 million in cash and runway into 2027, the company is positioned to carry its programs through key 2026 catalysts.

For investors, the takeaway is that Scholar Rock may be entering a higher-risk, higher-reward window—one where regulatory, manufacturing, and commercialization execution will matter far more than quarterly volatility.

Glossary

Assets Under Management (AUM): The total market value of investments managed by a fund or investment firm.
13F Reportable Assets: Securities that institutional investment managers must disclose quarterly to the SEC under Form 13F.
Net Position Change: The total dollar change in a fund's investment holding after buying or selling a security.
Stake: The ownership interest or number of shares held in a company by an investor or fund.
Outperforming: Achieving a higher return than a specified benchmark or index over a given period.
Biopharmaceutical: A sector focused on developing drugs using biological sources and biotechnology methods.
Pipeline: The portfolio of drug candidates a biotechnology or pharmaceutical company is researching or developing.
Strategic Collaboration: A formal partnership between companies to jointly develop, market, or research products or technologies.
Growth Factor Signaling: Biological processes where proteins signal cells to grow or divide, often targeted in drug development.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.