Scholar Rock Holding Corporation

Good morning and welcome to Scholar Rock's third quarter financial results and business update call. All participants will be in listen-only mode. After the company's prepared remarks, co-participants will have an opportunity to ask questions. To ask a question, you may press star then 1-1 on your touchtone phone. To withdraw your question, please press star 1-1 again. Please note this event is being recorded. Before we begin, I'd like to point out that we will be making various statements about Scholar Rock's expectations, plans, and prospects that constitute forward-looking statements for the purposes of the safe harbor provisions on the Private Securities Litigation Reform Act of 1995. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any future date. I encourage you to go to the investors and media sections of our website to find our most up-to-date SEC statements and filings. A recording of today's event will also be available on our website should you want to rewatch at a later date. I would now like to turn the conference over to Jay Backstrom, President and CEO of ScholarRock. Jay, please go ahead.

thank you carmen good morning and welcome everyone thank you for joining our third quarter business update it's a very exciting time at scholar rock with the success of sapphire our phase three registration study and spinal muscular atrophy and a successful financing we have great momentum heading to the end of 2024. i'm joined on today's call by ted miles our chief operating officer and chief financial officer for our call this morning i will start with a company overview Ted will provide a financial and business update, and I'll provide a few closing remarks before opening the call up for questions. As shown on slide six, we had another very successful quarter, building on the momentum that we created throughout 2024. The dedication and commitment across the organization has been remarkable. The teams continue to execute and deliver all of our key milestones on time or ahead of schedule. For our lead program with epidegromab and spinal muscular atrophy, the clinical team did an outstanding job delivering the SAFIRE data with great skill, speed, and high quality, enabling us to report out the successful results in early October. This flawless execution allows us to advance toward the next important milestones of submitting the BLA and MAA in Q1 of 2025, and keeps us on track to have our first commercial launch in the U.S., in Q4 2025, with Europe to follow, assuming regulatory approvals. In addition, for our EMBRACE phase two proof of concept with epidechromab, we completed enrollment ahead of schedule, positioning us to report out top line results earlier than planned, now targeting Q2 of 2025. Similarly, the research team continues to deliver a steady cadence of informative non-clinical data with SRK439, our novel, highly selective anti-myostatin program in obesity and cardiometabolic disorders. In addition to our focused execution, we expanded our management team with the addition of Beth Schaefer. Beth is an industry veteran who joined in September as Chief Business Officer to help guide our investment decisions and partnering opportunities to enable us to take full advantage of our validated platform that has produced a robust pipeline of high-value potential products. Turning to slide seven. Before I provide more detail of our third quarter results, I want to start with a reminder as to why we are here. Our purpose is to create new possibilities for those living with SMA, like Liza, who made it clear that they want more. More means gaining muscle strength and function in order to maintain independence for basic daily activities, such as feeding yourself, turning in bed, or operating a motorized wheelchair. activities that can be maintained or achieved with a one to two point improvement on the Hammersmith functional motor scale, a scale designed specifically for SMA. When asked what she was seeking, Liza made it clear, muscle. Muscle is everything. Not a slight age. As we announced in October, our pivotal phase three SAFIRE study met the primary endpoints with a 1.8 point improvement of epitogrammatic plus standard of care compared to placebo plus standard of care as measured by the gold standard, SMA-specific Hammersmith functional motor scale at week 52. This clinically meaningful benefit was statistically significant with a p-value of 0.0192. Patients receiving epidogrammab demonstrated early and increasing motor function improvement versus placebo as measured by the Hammersmith scale, with the epidogrammab patients gaining function while those receiving placebo lost function despite being on standard of care. Importantly, Pitigramab demonstrated consistency of effect across doses and age groups of 2 to 21 in a broad SMA population. Further, Pitigramab showed transformative clinical activity with 30% of patients who were already receiving standard of care achieving an additional three-point or greater improvement in their Hammersmith scores. With respect to safety and tolerability, SAFIRE confirmed the Pitogramab's favorable safety profile, which was consistent with the established safety profile seen in over four years of treatment in SMA, based on our Phase II TOPAS study. The observed safety profile is consistent with the Pitogramab's highly selective approach to blocking myostin. We are thrilled with these results and what it means for the SMA community, patients, their families, caregivers, and physicians. We believe these data collectively show that a Pitogramab has the potential to become part of a new standard of care in SMA. Turning to slide nine, to put our results into context, it is helpful to understand the normal trajectory for those receiving standard of care treatment. Despite the availability of three approved therapies targeting the SMN protein, individuals like Liza are still at risk of losing function over time, given the inherent progressive nature of SMA. This was illustrated at the CURE SMA meeting in June of this year. The graph represents the Hammersmith motor function scores over time for the nusinersen-treated patients from CHERISH-SHINE study, with the orange line representing the trajectory of those randomized to nusinersen, referred to as early dose group. As shown, the motor function improved for the first two years after starting treatment with nusinersen, followed by a plateau where there's no further improvement in motor function. After four years of treatment, however, there's a progressive loss of motor function of approximately one point per year despite the continued treatment with this standard of care therapy. The purple shaded box represents the time period in terms of duration of nusinersen treatment that is similar to the median treatment duration of nusinersen for those enrolled in SAFIRE, a time period where the SAFIRE patients were clearly on the declining phase of their treatment journey while on standard of care. Now to take a look at how lopidogramab affects motor function over time, Slide 10 displays the change from baseline in Hammersmith scores by visit. These line graphs beautifully articulate the treatment benefit of epitogramab over the course of the treatment period. As you can see, the Hammersmith scores improved in patients on epitogramab as early as eight weeks, the first post-baseline assessment. By contrast, the scores decreased in those on placebo with a change from baseline of minus 1.2 points, similar to the long-term data on nusinersen, that indicated a loss of about one point per year after four years of treatment. There's early separation between epidogramab and placebo. The difference widens by the end of the treatment period, underscoring the effect of epidogramab on the disease course from losing function despite being on standard of care to gaining function by adding epidogramab. The strength of the results is illustrated by the forest plot for all of the pre-specified analyses shown in slide 11. As shown, there's consistency across analyses with all showing improvement favoring epidogrammab, including across doses and across age groups. These analyses speak to the strength and the robustness of our results. Moving to slide 12. To further underscore functional improvement, we see 30% of SAFIRE patients on epidogrammab achieving a three-point improvement versus 12.5% for those on placebo. This transformative magnitude of improvement is extraordinary on top of standard of care. Again, the strength and consistency of the results demonstrate the ability of epitogramab to alter the course of disease from losing function to gaining function with a potential for profound impact on the lives of those living with SMA. We believe epitogramab is suitable for chronic treatment For a broad SMA population, based on the efficacy seen with SAFIRE, with improvements seen across all age groups two to 21, the well-tolerated safety profile, with safety supported by more than four years of experience in SMA, and we are working with urgency to finalize our regulatory applications and submit the BLA and MAA in the first quarter of 2025. Now moving to our cardiometabolic program on slide 14, The recent approvals and rapid adoption of semaglutide and trisepatide has had very positive impact on those living with obesity. However, a key issue that has emerged is the significant loss of lean muscle mass associated with these highly effective treatments. Given the important role muscle plays in energy metabolism and glucose homeostasis, maintaining appropriate levels of lean muscle is essential to healthy living. We believe our approach to preserving lean muscle mass with our highly selective, novel, anti-myostatin SRK439 when used with a GLP-1 receptor agonist can preserve lean muscle mass and promote healthy weight management. We see SRK439 as part of the next wave of innovation in the treatment of obesity and are working to submit the IND targeted for mid-year 2025. Now to slide 15, we designed a comprehensive non-clinical program with SRK439 And to date, we've demonstrated strong scientific rationale and promising non-clinical evidence, including demonstrating preservation of lean mass during GLP-1 receptor agonist-induced weight loss, improvement in fasting glucose beyond GLP-1 receptor agonist alone, increase in lean mass and attenuation of fat mass regain following GLP-1 receptor agonist withdrawal, greater potency compared to an anti-ACT-R2 antibody, and most recently, an increase in lean mass and lowered fat mass gain following treatment with metformin and SRK439. Turning to slide 16, we entered into the area of obesity as we believe we have an elegant solution to preserving lean muscle mass with a potential attractive risk-benefit profile for long-term healthy weight management. We have the right target. Inhibition of myostatin, a negative regulator of muscle, is known to promote muscle growth and function. We have a validation of our approach, given the results of SAFIRE, demonstrating improvement in motor function. And further, preserving lean mass has the potential to improve durability of weight loss. And our highly selective approach in targeting the pre- and latent form of myostatin minimizes unwanted toxicities and supports the potential for a favorable benefit-risk profile. I will now invite Ted to provide a financial and business update. Ted?

Thanks, Jay. It's been a very busy few months, and I'm excited to provide some additional insight into areas of focus recently and in the months to come. Turning to slide 18, based on the positive SAFIRE data that we disclosed in October, we completed an upsized follow-on offering of $345 million. On a pro forma basis, this puts our September 30 cash balance at approximately $463 million, which enables us to scale up and focus on driving key priorities forward. namely expanding our anti-myostatin platform and preparing for the commercialization of epitigromab if approved. The success of the SAFIRE trial de-risked the epitigromab program and provides an opportunity to expand the number of SMA patients that epitigromab may help. As we have disclosed previously, we are looking forward to initiating the OPAL clinical trial in mid-2025 to explore epitigromab in combination with standard of care in patients under two years of age. Another key priority for our anti-myostatin platform is advancing our novel selective anti-myostatin antibody, SRK439. We expect to file our IND for SRK439 next year, and we look forward to reporting the results of our EMBRAZE trial in the second quarter of 2025. EMBRAZE is a proof-of-concept study of epitigremab in a patient population living with obesity, testing the hypothesis of a selective anti-myostatin as an important therapeutic approach to healthy weight management. And, of course, we are fully engaged in commercial launch preparations of Epidigromab and SMA. As we've disclosed previously, before we had positive data, the company was being very thoughtful about planning the work that needed to occur while managing resources carefully, not to invest too much too early. With the positive data and the upsized raise, we are now actioning those plans focused on the following key initiatives. The first is continued engagement of critical stakeholders, such as HTPs and the patient community, The second is ensuring an optimal treatment experience for those with SMA. And the third is building a world-class commercial team to deliver both a US and European launch. Turning to slide 19, I'll provide a bit more insight into our approach to market over the near and intermediate term. We have strategically invested in foundational activities over the past several years. Among the most important of these investments We've been building strong relationships with HCP, patient, and advocacy communities and payers in both the U.S. and Europe. We continue to partner, listen, and learn from these very important stakeholders. Our MSL team has been engaging with healthcare providers at key SMA treatment sites, including Cure SMA and MDA centers. We also began hiring our payer accounts team to engage and educate national, regional, and government payers. This past June, we launched Life Takes Muscle, the first muscle-focused disease education campaign in SMA, which reflects what we have heard from the community that more is needed beyond current standard of care to treat SMA. There's been positive reaction to the campaign from patients, caregivers, and treaters with engagement on social media channels. In 2025, as we eye successful launch of Opidigrimab, we're committed to ensuring an excellent and customized treatment experience for patients we aim to serve. This also includes working with channel and hub partners to deliver excellent patient services support in providing the option for monthly home infusion of Opidigrimab. Finally, we look to complete the build of our field team. We believe that with a total of fewer than 50 full-time employees, we can reach and support the U.S. market in a capital efficient and highly effective manner. As we look to 2026, it's with full awareness that SMA is a global disease, and our goal is to make epidogramab available to as many SMA patients as possible. If approved, we plan to commercialize in selected European countries, and we'll partner with distributors and strategic partners to reach patients outside of the US and Europe. Turning to slide 20, we see a potential path to blockbuster status for epidogramab and SMA. A few key market dynamics give us high confidence that ScholarOx's first commercial launch is positioned for success. The right market, the right medicine, and the right approach. The current treatment landscape for SMA is $4.5 billion and growing. While these treatments address motor neuron component of SMA, the muscle component of the disease is yet to be addressed. We're committed to developing a PITGRAB for as many SMA patients as possible who may benefit from this cutting edge therapy. Importantly, we look to our clinical success to demonstrate that epitogram is safe and effective and is addressing an important unmet medical need for patients with SMA. We know where the patients, where the SMA patients are, and we know many of the physicians who are treating these patients. While there's still a great deal of work to be done, and as we continue to educate the broader community, there is a high degree of awareness that muscle-targeted therapy is the next important frontier for patients living with SMA. Based on these dynamics, we believe ipidicromab has a total revenue potential of greater than a billion dollars, and that assumes a competitive muscle targeted therapies market in SMA. Turning to slide 21, there is no doubt that Scholarock is firing on all cylinders. We have a very exciting 2025 ahead of us, and we're running with a sense of urgency and excitement as we strive for continued operational excellence. There are multiple upcoming milestones and value inflection points for Scholarock. Our team remains on track to complete the regulatory submissions in the first quarter of 2025. We're expanding our myostatin clinical efforts as we look to the under two SMA population, as well as those living with obesity, and we're driving forward to transitioning Scholar Rock into a commercial company with a planned launch of a Pitigramab and SMA. Now I'll pass back to Jay for some concluded comments before we open the line for questions. Jay? Thank you, Ted.