Larimar Therapeutics stock maintains Buy rating at Guggenheim ahead of key data

Published 14/08/2025, 19:58
Larimar Therapeutics stock maintains Buy rating at Guggenheim ahead of key data

Investing.com - Guggenheim has reiterated its Buy rating and $26.00 price target on Larimar Therapeutics (NASDAQ:LRMR), currently trading at $4.24, following the company’s second quarter 2025 earnings report. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $10 to $40, suggesting significant upside potential for this $360 million market cap biotech company.

The firm notes that Larimar remains on track to present initial open-label extension (OLE) data in September 2025, which will include safety, frataxin levels, pharmacokinetics, and clinical outcomes from 30-40 participants who received at least one dose of nomlabofusp. The first patient was dosed in March 2024 at 25mg, with all patients transitioning to 50mg starting November 2024.

Larimar also plans to present safety and pharmacokinetic data from its adolescent study in September 2025, with enrollment of adolescent participants into the OLE study currently ongoing. The adolescent study, which included 14 participants aged 12-17 years, completed dosing in March 2025.

The company expects to begin recruitment for its global Phase III study later this year, maintaining its Biologics License Application submission target for the second quarter of 2026, according to management.

Larimar has extended its cash runway into the fourth quarter of 2026 following a recent $65.1 million capital raise, positioning the company to deliver on its strategic objectives with potential catalysts ahead and regulatory clarity. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 7.48 and more cash than debt on its balance sheet, though it’s important to note the company is currently burning through cash rapidly. Get access to 8 more key InvestingPro Tips and a comprehensive financial health analysis through the Pro Research Report.

In other recent news, Larimar Therapeutics completed a public offering, raising $69 million through the sale of 21,562,500 shares at $3.20 per share. This figure includes the full exercise of the underwriters’ option to purchase additional shares. The company initially announced the pricing of its underwritten public offering at the same price per share, expecting to generate $60 million in gross proceeds before deductions. Following the public offering, Jones Trading adjusted its price target for Larimar Therapeutics from $12.00 to $10.00, maintaining a Buy rating on the stock. The adjustment was attributed to the dilution resulting from the recent offering. Despite the dilution, the offering has bolstered Larimar’s cash position to approximately $185 million as of August 1, extending its financial runway into the fourth quarter of 2026. These developments reflect the company’s ongoing efforts to secure funding for its operations and future endeavors.

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