Scholar Rock Holding Corp (NASDAQ:SRRK), a biopharmaceutical company, announced significant developments following its Annual Meeting of Stockholders. The company reported that its stockholders approved two key amendments to its Certificate of Incorporation.
The first amendment, known as the Officer Exculpation Amendment, limits the liability of certain officers as permitted by recent changes to Delaware law. This amendment was previously approved by the company's Board of Directors, subject to stockholder approval, and became effective upon filing with the Secretary of State of Delaware on June 27, 2024.
The second amendment, referred to as the Authorized Shares Amendment, involves an increase in the number of authorized shares of common stock from 150 million to 300 million. Similar to the Officer Exculpation Amendment, this was also pre-approved by the Board and took effect on the same date after stockholder approval.
During the Annual Meeting, stockholders also voted on various other proposals, including the election of Class III directors for a three-year term, ratification of the company's independent registered public accounting firm, approval of executive compensation on a non-binding, advisory basis, and the preferred frequency for advisory votes on executive compensation.
The election of directors resulted in the appointment of Richard Brudnick, Jeffrey S. Flier, M.D., and Akshay Vaishnaw, M.D., Ph.D. to the Board. Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
Moreover, the compensation of the company's named executive officers was approved on a non-binding, advisory basis, and the stockholders favored an annual frequency for future advisory votes on executive compensation.
These corporate governance updates are part of Scholar Rock's commitment to aligning with legal standards and enhancing shareholder value. The complete details of the amendments and voting outcomes are available in the company's 8-K filing with the Securities and Exchange Commission.
In other recent news, Scholar Rock has initiated the Phase 2 EMBRAZE trial for its drug candidate apitegromab, focusing on obesity treatment. The trial aims to evaluate the safety and efficacy of the myostatin inhibitor in preserving lean muscle mass in obese individuals. Concurrently, Scholar Rock presented new preclinical data, demonstrating SRK-439's potential to increase lean mass and improve body composition.
BMO Capital Markets and Piper Sandler have maintained favorable ratings for Scholar Rock. BMO Capital Markets increased its price target for Scholar Rock shares to $31 in anticipation of the upcoming Phase 3 SAPPHIRE trial results. Piper Sandler reaffirmed its Overweight rating with a steady price target of $28.00.
Despite not currently generating revenue, with estimates projecting $0 for both 2023 and 2024 but anticipating $90 million in 2025, Scholar Rock has maintained investor interest. The company's cash reserves, standing at $238 million at the end of the last quarter, ensure the continuity of its research and development endeavors. These are the recent developments in the company's journey.
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