Scholar Rock Holding Corporation received a significant regulatory setback as the U.S. Food and Drug Administration issued a Complete Response Letter declining approval of apitegromab for treating patients with spinal muscular atrophy. The biotech company's shares fell approximately 15% in premarket trading following the announcement.
Manufacturing Issues Drive Regulatory Decision
The FDA's rejection was not based on concerns about apitegromab's safety or efficacy profile, but rather on findings from a routine inspection of Catalent Indiana LLC, the third-party manufacturing facility responsible for producing the drug. This distinction is crucial for the drug's future prospects, as manufacturing issues are typically more straightforward to resolve than clinical concerns.
"We are continuing to work closely with Catalent Indiana on the FDA's manufacturing observations so that we can resubmit the apitegromab BLA as soon as possible," said David L. Hallal, Chairman and Chief Executive Officer of Scholar Rock.
Resubmission Strategy
Scholar Rock plans to resubmit the Biologics License Application for apitegromab once Catalent Indiana successfully addresses the FDA's observations from the manufacturing facility inspection. The company has not provided a specific timeline for when the resubmission might occur, as this depends on how quickly the manufacturing issues can be resolved.
Market Impact
The regulatory setback had an immediate impact on Scholar Rock's stock performance, with shares dropping more than 12% in pre-market trading. Prior to the announcement, shares had closed at $32.58, representing a 5.64% gain on Monday. The stock has experienced significant volatility over the past year, trading in a range between $6.76 and $46.98.
The Complete Response Letter represents a temporary delay rather than a permanent rejection for apitegromab, as the issues identified are related to manufacturing compliance rather than the drug's clinical profile. However, the timeline for resolution and resubmission remains uncertain, dependent on Catalent Indiana's ability to address the FDA's manufacturing observations.
