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Investing.com - JMP Securities lowered its price target on Larimar Therapeutics (NASDAQ:LRMR) to $18.00 from $22.00 on Friday, while maintaining a Market Outperform rating on the stock. The new target still represents significant upside potential, with analyst targets ranging from $10 to $33, according to InvestingPro data.
The price target reduction follows Larimar’s recent equity financing, which caused dilution despite strengthening the company’s cash position. With a current ratio of 5.46 and more cash than debt on its balance sheet, the company appears well-positioned financially. JMP’s analyst noted that new open-label data for the company’s Friedreich’s ataxia candidate, nomlabofusp, is expected in September.
The upcoming data release will include safety information, frataxin concentrations, and clinical measures from approximately 30-40 patients who have received at least one dose of nomlabofusp. Initial patients began treatment with 25 mg doses in March 2024, with a transition to 50 mg dosing that started in November.
Larimar plans to begin enrollment for its confirmatory trial later this year, with a Biologics License Application (BLA) submission for accelerated approval targeted for the second quarter of 2026.
The company reported pro forma cash of $204 million at the end of the second quarter of 2025, which includes proceeds from July’s equity financing, providing sufficient financial runway into the fourth quarter of 2026. The stock has shown strong momentum, with a 19% return over the past week and a 28% gain over the last six months.
In other recent news, Larimar Therapeutics has completed a public offering, raising $69 million by selling 21,562,500 shares of common stock at $3.20 per share. This includes the full exercise of the underwriters’ option to purchase an additional 2,812,500 shares. The funds are expected to extend the company’s financial runway into the fourth quarter of 2026, as noted by Jones Trading, which maintained a Buy rating but lowered its price target to $10.00 due to dilution concerns. Truist Securities and Guggenheim have also reiterated their Buy ratings on Larimar Therapeutics, with price targets of $18.00 and $26.00, respectively. Both firms highlighted the company’s progress in its open-label extension study, with data expected in September 2025. This study will provide insights into safety, frataxin levels, pharmacokinetics, and clinical outcomes from patients receiving the nomlafushi treatment. The first patient was dosed in March 2024, and all participants transitioned to a 50mg dosage starting November 2024. These developments reflect ongoing interest and activity around Larimar Therapeutics as it progresses with its clinical studies.
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