Wednesday, Citi reaffirmed its Buy rating on Larimar Therapeutics (NASDAQ:LRMR) with a consistent price target of $14.00. The focus remains on the upcoming release of initial Open-Label Extension (OLE) data for the company's drug nomla, which is expected to be disclosed in mid-December. This data is anticipated to provide insights into the drug's long-term effects and safety beyond the 28-day period examined in the Phase 2 study.
The company had previously reported delays in OLE site activation, which influenced the enrollment pace and the length of follow-up for many participants. Despite these delays, the forthcoming update is projected to include valuable information on the sustained effects of frataxin concentrations and extended safety data. The update might also present preliminary functional data, such as upright stability measures.
Citi has initiated a Positive 90-day Catalyst Watch ahead of the data release, suggesting a favorable outlook for the stock. The firm expects that confirmation of a positive safety profile, sustained increases in frataxin levels, and initial signs of beneficial outcomes could drive an uptick in Larimar's share value.
Investors are now looking forward to the mid-December announcement, which could potentially validate the long-term benefits and safety of nomla, Larimar Therapeutics' investigational treatment. The market anticipates this key milestone as a determinant of the drug's future prospects and its impact on the company's stock performance.
In other recent news, Larimar Therapeutics has been the subject of several positive analyst ratings. Leerink Partners maintained an Outperform rating on Larimar, anticipating key developments from the company's Open-Label Extension study data in the fourth quarter of 2024. The firm also highlighted the potential of Larimar's drug, nomlabofusp, which has shown promising early data in treating Friedreich's ataxia.
Wedbush also assigned an Outperform rating to Larimar, predicting that nomlabofusp could enter the market by FY27 and potentially generate $1,502M in revenue by FY31. This outlook was influenced by the drug's nomination for the FDA's START pilot program, which could expedite its development and review process.
Jones Trading initiated coverage on Larimar with a Buy rating and a price target of $14, forecasting that nomlabofusp could reach $1.3 billion in peak unadjusted sales by 2031. Similarly, Baird initiated coverage with an Outperform rating and a $16 price target, citing a 60% probability of nomlabofusp gaining approval, possibly with accelerated approval by 2026.
InvestingPro Insights
As Larimar Therapeutics (NASDAQ:LRMR) approaches the release of its Open-Label Extension data, InvestingPro data provides additional context for investors. The company's market capitalization stands at $541.91 million, reflecting the market's current valuation of its potential. Despite the anticipation surrounding the upcoming data release, it's worth noting that Larimar is not currently profitable, with an adjusted operating income of -$65.83 million over the last twelve months as of Q2 2023.
InvestingPro Tips highlight that Larimar holds more cash than debt on its balance sheet, which could provide financial flexibility as it continues its drug development efforts. This strong cash position aligns with the company's need for resources to support ongoing clinical trials and potential commercialization of nomla.
Interestingly, Larimar has shown a strong return over the last year, with a 1-year price total return of 166.44% as of the latest data. This performance suggests that investors have been optimistic about the company's prospects, possibly in anticipation of positive clinical trial results.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 5 more InvestingPro Tips available for Larimar Therapeutics, which could provide valuable perspective on the company's financial health and market position as it approaches this critical data release.
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