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On Wednesday, Citizens JMP maintained a positive outlook on Larimar Therapeutics (NASDAQ:LRMR), with a Market Outperform rating and a steady price target of $21.00. The stock, currently trading at $2.38, has seen a remarkable 29.35% gain over the past week, though it remains well below its 52-week high of $11.20. According to InvestingPro data, analyst price targets range from $10 to $40, suggesting significant potential upside from current levels. The firm’s analyst, Jonathan Wolleben, highlighted several key milestones expected for Larimar in 2025. These include the anticipated data from the ongoing open-label extension trial of nomlabofusp in Friedreich’s ataxia patients, specifically the 50 mg cohort, and results from the pediatric run-in study, both slated for release in September. Additionally, the initiation of a pivotal confirmatory study is projected for mid-2025.
Wolleben also noted the planned submission of Larimar’s Biologics License Application (BLA) in the second half of 2025. This submission is aimed at potentially securing accelerated approval based on skin frataxin levels. With a market capitalization of $152.39 million and a strong financial position showing more cash than debt on its balance sheet, Larimar appears well-positioned to pursue its regulatory objectives. InvestingPro analysis indicates the company maintains a healthy current ratio of 8.02, suggesting robust liquidity to fund its development programs. The analyst expressed optimism about the FDA’s potential acceptance of the application, suggesting that such an event would likely be received positively by the investment community. This sentiment is grounded in the belief that the FDA’s acceptance would signal the agency’s endorsement of frataxin as a surrogate marker for accelerated approval.
Larimar Therapeutics is currently engaged in the development of nomlabofusp, a treatment for Friedreich’s ataxia, a genetic neurodegenerative disorder. The company’s efforts are part of a broader push to address rare diseases with significant unmet medical needs. The upcoming milestones, as outlined by Citizens JMP, represent critical steps in the company’s journey towards bringing new therapeutic options to patients affected by this condition.
The analyst’s comments come as Larimar continues to progress through the necessary clinical and regulatory phases. The data from the open-label extension trial and the pediatric run-in study, along with the initiation of the confirmatory study, are essential components of the company’s strategy to establish nomlabofusp’s efficacy and safety. The subsequent BLA submission will be a pivotal moment in determining the drug’s path to market, especially if accelerated approval is granted.
Investors and stakeholders in Larimar Therapeutics are likely to watch these developments closely as they unfold throughout 2025, with each milestone potentially impacting the company’s stock performance and future prospects. While the stock has experienced a significant decline of 67.62% over the past six months, recent momentum suggests renewed investor interest. For deeper insights into Larimar’s financial health, growth prospects, and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro, which offers exclusive metrics and expert analysis for over 1,400 US stocks.
In other recent news, Larimar Therapeutics has reported significant developments concerning its drug candidate, nomlabofusp, for Friedreich’s ataxia (FA). The U.S. Food and Drug Administration (FDA) has expressed openness to using skin frataxin (FXN) concentrations as a surrogate endpoint for accelerated approval, a move that could facilitate Larimar’s planned Biologics License Application (BLA) submission by the end of 2025. Analysts from Jones Trading, H.C. Wainwright, and Citi have maintained their Buy ratings on Larimar, with price targets ranging from $14 to $16, reflecting confidence in the company’s regulatory progress and market potential. Nomlabofusp has received various regulatory designations, including Fast Track and Orphan Drug Designation, further highlighting its potential. Larimar plans to begin a confirmatory Phase 3 study in 2025, with data from an ongoing open-label extension study expected in September of the same year. Additionally, Larimar reported a net loss of $28.8 million for the fourth quarter of 2024, with $183.5 million in cash and marketable securities, indicating a strong financial position to support ongoing development. The company has also awarded performance-based stock units to key executives, aligning their compensation with regulatory milestones. These developments underscore Larimar’s focused efforts to advance nomlabofusp as a potential treatment for FA.
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