Scholar Rock director Srinivas Akkaraju sells more than $34 million in company stock Via Investing.com
Scholar Rock Holding Corp (NASDAQ:) director Srinivas Akkaraju recently sold a significant amount of the company's stock, a transaction that was publicly filed on October 7, 2024. The sale, which took place on the same day, had a total value of more than $34 million, with share prices ranging from $27.50 to $32.50.
According to the filing, three separate transactions were made involving the sale of Scholar Rock common stock. In the first transaction, 510,000 shares were sold at $27.50 per share. Another batch of 510,000 shares was sold at $30 per share in secondary trading. The last transaction had 155,713 shares traded at $32.50 per share. All of the shares sold are held indirectly by Akkaraju through Samsara BioCapital, LP, as indicated in the filing footnotes.
The transaction was made in accordance with the trading plan of Rule 10b5-1, which was previously established on June 10, 2024. Rule 10b5-1 allows the insiders of the company to set up a predetermined plan to sell the company's stocks, giving them protection against the possibility. allegations of insider trading.
A footnote in the filing also clarifies that the shares sold were owned by Samsara BioCapital LP (“Samsara LP”), and while Akkaraju is a managing member of Samsara BioCapital GP, LLC, the general partner of Samsara LP, he disclaims beneficial ownership of Samsara BioCapital LP. these shares without the measure of his capital gain there.
After the sale, the remaining shares held by Samsara LP were not disclosed in the filing, except for the separate holding of 13,500 shares of common stock that Akkaraju directly owns.
These transactions represent a significant change in Scholar Rock's ownership structure and may be of interest to investors who track the company's inner workings. Scholar Rock, a biopharmaceutical company, is known for its focus on the discovery and development of new drugs to treat serious diseases, including cancer and fibrosis.
In other recent news, Scholar Rock has made significant progress in its drug development plans. The biopharmaceutical company recently announced a public offering aimed at raising $275 million, with the aim of financing the needs of various companies including the sale of apitegromab. This follows positive results from its Phase 3 SAPPHIRE clinical trial, which showed a statistically significant improvement in muscle function in patients treated with apitegromab. Analysts from TD Cowen and Truist Securities have maintained a buy rating on Scholar Rock, citing these strong research results.
The company also announced the appointment of Beth Shafer, Ph.D., as Chief Business Officer, who will be responsible for directing the company's long-term business development strategy. Scholar Rock is advancing its apitegromab EMBRAZE study in obesity, with first data now expected in the second half of 2025. These are the latest developments in Scholar Rock's ongoing efforts to bring new therapies to market.
InvestingPro Insights
Scholar Rock Holding Corp director Srinivas Akkaraju's recent stock sales are in line with several key metrics and trends highlighted by InvestingPro. The company's stock has shown impressive performance, with InvestingPro data showing a total price return of 365.13% over the past year and a fundamental return of 360.13% over the past week. This unique growth pattern is likely to influence the timing of internal sales.
InvestingPro Tips points out that Scholar Rock is “trading near its 52-week high” and has experienced “strong returns over the past month, three months, and five years.” These factors suggest a potential opportunity for insiders to reap the benefits, which could explain Akkaraju's massive stock selloff.
However, investors should be aware that Scholar Rock is “a quick cash burn” and “suffers from weak gross profit margins,” according to InvestingPro Tips. The company's financial health presents a mixed picture, as it “carries more cash than debt on its balance sheet” but has been “unprofitable for the past twelve months.” This information provides context to insider trading and may be important to investors evaluating the company's long-term prospects.
For a more comprehensive analysis, InvestingPro offers 15 additional Scholar Rock tips, which provide a deeper understanding of the company's financial position and market performance.
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