On July 18, 2025, Director Jeffrey S. Flier disclosed the sale of 11,136 shares of Scholar Rock(SRRK -0.68%) in an open market transaction.
Transaction summary
| Metric | Value |
|---|---|
| Shares traded | 11,136 |
| Transaction value | $445,688.33 |
| Post-transaction shares | 24,070 |
| Post-transaction value | $962,318.60 |
Source: SEC Form 4 filing from July 18. The insider transaction occurred on July 16.
Key questions
How does the transaction compare to previous insider activity?
This is Jeffrey S. Flier’s fourth disclosed transaction in 2025, consistent with a recent acceleration in activity and a transition to net selling, with the median trade size of approximately 9,384 shares in 2025.
What is the significance of the timing relative to price and performance?
The sale was executed at $40.02 per share, representing a 2.67% discount to the closing price of $41.12 as of July 22, 2025. This follows a one-year total return of 346% at the time of the filing, indicating the sale followed substantial price appreciation.
How does this sale fit into the broader historical pattern of insider trading for this individual?
Over a roughly 2-year period, Jeffrey S. Flier’s activity shifted from infrequent net buying (2023–2024) to more frequent net selling in 2025, with annual trade counts of one in 2023, one in 2024, and four in 2025. The current sale is consistent with this trend, and the average gap between trades has narrowed from 350 days initially to 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% |
Note: All figures are current as of July 23, 2025.
Company snapshot
Scholar Rock develops innovative biopharmaceutical products, including apitegromab for spinal muscular atrophy and SRK-181 for cancer, with a pipeline targeting neuromuscular disorders, cancer, and fibrosis. The company operates a research-driven model, generating value through drug discovery, clinical development, and strategic collaborations, such as its agreement with Gilead Sciences for fibrotic disease therapies.
Scholar Rock is a clinical-stage biotechnology company focused on discovering and developing therapies that modulate protein growth factor signaling to address severe diseases. The company leverages proprietary science to build a differentiated pipeline, targeting conditions with significant clinical and commercial potential. Strategic collaborations and late-stage clinical assets position Scholar Rock to compete in high-value therapeutic markets.
Foolish take
Scholar Rock is a clinical-stage biotech. At this point, it's pre-revenue with significant losses each quarter. This is completely normal for a company in its position. The company is well-capitalized and has the cash on hand to continue developing its drugs for some time.
The company has several exciting and potentially very lucrative drugs in the pipeline. Perhaps the biggest opportunity lies in apitegromab, a drug that can help patients who receive a GLP-1 like Wegovy retain lean muscle mass. GLP-1s are some of the most successful drugs on the market and are widely prescribed for, among other things, weight loss. However, a significant amount of weight lost by patients ends up being muscle, an outcome that most want to avoid. The company's apitegromab showed a 54.9% reduction in the loss of lean muscle in early results from its Phase 2 trial.
This is a huge potential market, and despite the enormous rise in stock price over the past few months, I think there is still an opportunity here. Of course, it carries a significant amount of risk; there is no guarantee of success in the drug's development.
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.
