Scholar Rock (NASDAQ:SRRK) reported a significant increase in annual spending on Tuesday, reflecting the heavy operational costs of transitioning from a purely clinical-stage firm to a commercial-ready biopharmaceutical entity.
The Cambridge, Massachusetts-based company, which focuses on myostatin biology to treat spinal muscular atrophy (SMA) and other neuromuscular conditions, reported a full-year net loss of $377.9 million for 2025.
This compares to a net loss of $246.3 million in 2024.
On a per-share basis, the annual loss widened to $3.29, up from $2.47 in the prior year.
The widening deficit was driven primarily by a surge in general and administrative (G&A) expenses, which reached $176.2 million for the year—more than double the $67.5 million spent in 2024.
This increase underscores the company’s aggressive investment in building the corporate and commercial infrastructure necessary to support the potential launch of its lead candidate, apitegromab.
For the fourth quarter, Scholar Rock reported a net loss of $91 million, or $0.88 per share.
While research and development (R&D) expenses actually dipped slightly during the quarter to $46.9 million, the company saw a substantial jump in stock-based compensation, which totaled $75.6 million for the full year.
Despite the lack of revenue, a typical profile for a development-stage biotech, Scholar Rock maintains a robust capital position.
The company ended 2025 with cash, cash equivalents, and marketable securities totaling $367.6 million.
This liquidity was bolstered in the final quarter by $60.4 million in proceeds from the exercise of outstanding warrants.
The company says its focus remains on apitegromab, an investigational muscle-directed therapy that could potentially become a first-in-class treatment to improve motor function in patients with SMA, a market currently dominated by treatments like Biogen’s Spinraza and Roche’s Evrysdi.
With a cash runway that management previously indicated would extend into the second half of 2026, Scholar Rock is operating in a high-stakes window.