On Friday, JMP Securities analyst reaffirmed a positive outlook on Larimar Therapeutics (NASDAQ:LRMR), maintaining a Market Outperform rating with a price target of $21.00. Currently trading at $3.63, the stock has significant upside potential according to analysts, whose targets range from $12.49 to $36.00. The firm’s confidence in the company stems from its progress towards a Biologics License Application (BLA) submission for its drug candidate, nomlabofusp, expected later this year. InvestingPro analysis indicates the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report.
Larimar Therapeutics recently began dosing pediatric patients with nomlabofusp, which JMP Securities views as a sign of the FDA’s comfort with the drug’s safety profile. The ongoing pharmacokinetic (PK) run-in trial is evaluating doses in children that are equivalent to the 50 mg adult dose. This approach is believed to mitigate safety risks, providing a foundational assurance as the company moves forward. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 13.1 and more cash than debt, though it is rapidly consuming cash reserves as it advances its clinical programs.
The analyst highlighted that in mid-2025, Larimar will report long-term data from the 50 mg nomlabofusp adult trials as well as data from the adolescent PK study. These results are anticipated to be a significant driving factor for the company’s stock, which has shown recent momentum with an 8.7% gain over the past week despite a challenging six-month period. Additionally, pediatric participants in the trials will have the option to continue receiving nomlabofusp in the Open-Label Extension (OLE), which could offer a clearer view of the drug’s long-term functional benefits, especially in younger patients who are more likely to retain mobility and exhibit faster disease progression.
In comparison to other Friedreich’s ataxia (FA) treatments, such as Skyclarys, which is approved for patients aged 16 and older, and PTCT’s vatiquinone, which had a New Drug Application (NDA) submitted in December with an FDA decision expected by February, JMP Securities believes nomlabofusp stands out. Despite vatiquinone not meeting its primary endpoint in its pivotal trial, nomlabofusp is seen as the most promising FA candidate due to its potential to address the disease’s root cause and the possibility of approval next year for a broad patient population. Track Larimar’s development progress and access detailed financial analysis through InvestingPro, which offers exclusive ProTips and comprehensive research reports for over 1,400 US stocks.
In other recent news, Larimar Therapeutics has seen a series of developments. The company’s leading drug candidate, nomlabofusp, has shown potential in enhancing frataxin levels over extended periods, according to initial Open-Label Extension (OLE) data. However, the data also indicated that further dose optimization might be necessary, and two Serious Adverse Events (SAEs) reported in the study were highlighted as areas requiring close monitoring. Baird has maintained its Outperform rating on Larimar’s stock, albeit with a reduced price target, while Leerink Partners and Citi have also maintained their positive ratings. H.C. Wainwright has reiterated its Buy rating, forecasting sales of $356 million by 2030. These are just a few of the recent developments for Larimar Therapeutics.
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