New York City-based Commodore Capital fully exited its position in Scholar Rock Holding Corporation (SRRK +4.75%), 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
| Metric | Value |
|---|---|
| Price (as of Wednesday) | $41.08 |
| Market Capitalization | $4.2 billion |
| Net Income (TTM) | ($353.4 million) |
| One-Year Price Change | 8% |
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.
