Scholar Rock Holding Corporation (SRRK)

Scholar Rock weakness overdone after TOPAZ results, says JPMorgan
JPMorgan analyst Anupam Rama noted that Scholar Rock shares are down about 15%, which Rama views as "overdone," after the company announced update 12-month results from the phase 2 TOPAZ study in the treatment of Type 2/3 Spinal Muscular Atrophy. The 12-month data showed relatively consistent functional benefit compared to six-month interim data reported in October, noted Rama, who added that "there were no major concerns" on the safety front. The analyst, who sees the "totality of data as a probability of success increase lever," reiterates an Overweight rating on Scholar Rock shares.

I am not sure how many institutional investors would be willing to pay $39 per share for the new share offerings since the stock was trading in the $13 range three days ago (see the link below). These institutional investors like to buy things at discount. Also, what about those retail investors and traders who bought at the $44 range in AH-- they will get a nice haircut tomorrow morning.
Now we know why market makers actively pushed the price today into the stratosphere so SRRK would get the best possible price ($39 is a lot better than $13). This was one organized effort to push the price up and up. I expect SRRK to open around $39 tomorrow and then selling will start and the price will drop to low $30s.
https://finance.yahoo.com/news/scholar-rock-announces-pricing-public-023300383.html

I took a big loss shorting this stock. Lesson learned; don't fight it when JP Morgan and Jefferies are involved in the new proposed offering. JPM and Jefferies along with the institutional investors manipulated the price to its max potential to then make the offering.

Food for thought:

$39 compared to $13 (previous price) = 300%
Did they make 300% of the profit?
Is that drug going to make them 300% of profit without 3rd trial and FDA approval yet?

I might have been the dummy who bet against it, but I know when I see unfair market manipulation.

I am out and good luck to you all!

Very good read-- see the link below. For instance, Seeking Alpha article stated " I think that the total valuation will soon decrease to less than $700 million or share price of $27. Note that it is not 100% sure that SRRK will get FDA approval."
It also stated that "SRRK tested a total of 58 employees in Phase 2". Employees?? Never mind the small number (58) but "employees"? How common is that?

https://seekingalpha.com/amp/article/4384830-scholar-rock-is-phase-2-1-billion-is-too-expensive

The offering price is now $36.65-- no longer $39. Reality sets in. This stock will drop to $36 soon (it is $39.50 right now).
"The Company agrees to issue and sell the Underwritten Securities to the several Underwriters as provided in this underwriting agreement (this “Agreement”), and each Underwriter, on the basis of the representations, warranties and agreements set forth herein and subject to the conditions set forth herein, agrees, severally and not jointly, to purchase at a price per Share of $36.66 (the “Share Purchase Price”) from the Company the respective number of Underwritten Shares set forth opposite such Underwriter’s name in Schedule 1 hereto, and to purchase from the Company Warrants in respect of the respective number of Warrant Shares set forth opposite such Underwriter’s name in Schedule 1 hereto at a price of $36.6599 per Warrant Share (the “Warrant Purchase Price”)."
http://archive.fast-edgar.com/20201030/A9B2V62D8C22UZZZ2R2C2ZZZHQCKR2S2Z222/

UPDATED: Merck makes a $773M bet on TGFβ, acquiring a three-year old biotech
When checkpoint inhibitors work, they can perform wonders. But for many cancer patients, in-built or acquired resistance to these immunotherapies impedes their efficacy. Merck, the maker of the checkpoint king Keytruda, is shelling out up to $773 million to swallow Tilos Therapeutics, which is developing a class of drugs designed to mitigate checkpoint resistance.

Tilos Therapeutics, founded three years ago, is developing anti-LAP antibodies, designed to treat cancer, fibrosis and autoimmune diseases by unleashing the the immune system to attack disease. latency-associated peptide (LAP) is a protein that forms a cage around the transforming growth factor (TGFβ), holding the potent cytokine in a latent state until it is ready to be deployed. TGFβ’s misregulation can result in tumor development, and is thought to play a key role in fibrotic diseases.

Late last year, Gilead signed on to a discovery program with Scholar Rock $SRRK on a slate of TGFβ inhibitors for fibrotic diseases in deal up to $105 million — including the upfront payment, equity and a near-term preclinical goal — in addition to a hefty $1.4 billion in milestone payments. Meanwhile, Scholar Rock is set to work on its own portfolio of TGFβ oncology drugs.

This stock will fall to a about twice the P and D price. Standard practice by the insiders and big boys. Announce a positive test result, which quintuples the stock price. Then announce (within mere hours) a major stock dilution (optimistically called an "offering") which keeps the price high for a while. Then both insiders and the new "owners" cash in and longs are left holding the bag. Shorting is best as a day trade strategy, but it can work if you have the stones to hold on. If you disagree with me then you have to support the idea that volume can increase by a factor of thousands of percent for due to natural market forces. That makes no sense. It clearly has to be repeat trading by system insiders building a ridiculous volume which attracts retail average Joes' like a bright light attracts flies.