Scholar Rock Reports New Employee Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Scholar Rock (SRRK) granted inducement equity awards covering 83,102 shares of common stock to ten newly hired employees under its 2022 Inducement Equity Plan, in line with Nasdaq Listing Rule 5635(c)(4).

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CAMBRIDGE, Mass.--(BUSINESS WIRE)-- Scholar Rock (NASDAQ: SRRK; the “Company”) today announced that the company granted inducement equity awards covering an aggregate of 83,102 shares of its common stock to ten newly hired employees, consisting of inducement stock options to purchase an aggregate of 23,801 shares of common stock and inducement restricted stock units, covering an aggregate of 59,301 shares of its common stock.

The awards are subject to all terms and conditions and other provisions set forth in the Company’s 2022 Inducement Equity Plan (the “Plan”) and the award agreements thereunder.

The Plan, initially adopted by the Company’s board of directors on June 16, 2022, and as amended from time to time, is used exclusively for the grant of equity awards to individuals who were not previously employees of Scholar Rock, or following a bona fide period of non-employment, as an inducement material to such individuals entering into employment with Scholar Rock, pursuant to Nasdaq Listing Rule 5635(c)(4).

The inducement stock options have an exercise price of $51.85, which is equal to the closing price of Scholar Rock’s common stock on September 14, 2026. The inducement stock options will vest with respect to 25% of the shares of common stock underlying the award on the first anniversary of each employee’s start date, and the remaining 75% of the shares of common stock underlying the inducement stock options will vest in 12 equal quarterly installments thereafter. Vesting for the inducement restricted stock units will be in four equal annual installments. All vesting related to inducement awards is subject to the employees’ continuing service at the Company through the applicable vesting date.

About Scholar Rock
Scholar Rock is delivering muscle-targeted breakthroughs to transform the treatment of spinal muscular atrophy (SMA) and other rare neuromuscular diseases where muscle atrophy remains a critical unmet need. Scholar Rock intends to commercialize ISEMBYLD (apitegromab-mstn) globally, beginning in the U.S. for individuals living with SMA who are 2 years of age and older and currently receiving a survival motor neuron 2 (SMN2)-targeted treatment.

As a global leader in myostatin biology, a field focused on proteins that regulate muscle mass, the biopharmaceutical company is named for the visual resemblance of a scholar rock to protein structures. Our commitment to unlock fundamentally different treatment approaches is powered by broad application of a proprietary platform, which has developed novel monoclonal antibodies to modulate protein growth factors with extraordinary selectivity. Scholar Rock works every day to create new possibilities for patients through its highly innovative anti-myostatin program, including opportunities in additional rare neuromuscular diseases. Learn more about our neuromuscular franchise at ScholarRock.com and follow @ScholarRock on X and on LinkedIn.

Scholar Rock^® is a registered trademark and ISEMBYLD™ is a trademark of Scholar Rock, Inc.

Availability of Other Information About Scholar Rock
Investors and others should note that we communicate with our investors and the public using our company website www.scholarrock.com, including, but not limited to, company disclosures, investor presentations and FAQs, Securities and Exchange Commission filings, press releases, public conference call transcripts and webcast transcripts, as well as on X (formerly known as Twitter) and LinkedIn. The information that we post on our website, X, or LinkedIn could be deemed to be material information. As a result, we encourage investors, the media and others interested to review the information that we post there on a regular basis. The contents of our website or social media shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260918952370/en/

Scholar Rock:

Investors
Laura Ekas, Ph.D.
ir@scholarrock.com
917-439-0374

Media
Jeff Smith
682-401-8428
Molly MacLeod, Ph.D.
802-579-5995
media@scholarrock.com

Source: Scholar Rock

Key Terms

inducement equity awards financial

Inducement equity awards are stock-based grants—such as shares or options—given to newly hired employees or executives as a hiring incentive, often issued outside a company’s standard long-term compensation plan. They matter to investors because they dilute existing ownership, create a charge against earnings, and align new hires’ pay with company performance; think of it as giving a slice of the pie upfront to convince someone to join, which changes each owner’s share and incentives.

restricted stock units financial

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

nasdaq listing rule 5635(c)(4) regulatory

NASDAQ Listing Rule 5635(c)(4) is a rule that requires a company to get approval from its shareholders before selling a large amount of its shares, usually over 20%. This helps protect investors by making sure the company doesn't flood the market with new shares without their say, which could lower the stock's value.

monoclonal antibodies technical

Monoclonal antibodies are lab-made proteins designed to bind a single, specific target on cells or viruses, like identical keys cut to fit one lock. They are used as medicines, tests, or targeted delivery tools and can precisely block or mark disease processes. Investors care because they can become high-value drugs with large sales, long patent protection, and binary risks tied to clinical trial results, regulatory approval, manufacturing scale and pricing.

survival motor neuron 2 medical

A human gene (usually called SMN2) that produces a version of the survival motor neuron protein similar to the main SMN1 gene; because SMN2 makes less full‑length protein, the number and activity of SMN2 copies partly determine how much functional protein a person has. It matters to investors because diagnostic tests and many drug development programs for spinal muscular atrophy measure or target SMN2 to change protein levels, clinical outcomes, and regulatory decisions.