Larimar Therapeutics prices public offering at $3.20 per share

BALA CYNWYD, Pa. - Larimar Therapeutics, Inc. (NASDAQ:LRMR), currently trading at $3.53 with a market capitalization of $226 million, has priced its underwritten public offering of 18,750,000 shares of common stock at $3.20 per share, the clinical-stage biotechnology company announced Monday.

The offering is expected to generate $60.0 million in gross proceeds before deducting underwriting discounts, commissions, and other expenses. Larimar has also granted underwriters a 30-day option to purchase up to an additional 2,812,500 shares at the same price. According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt on its balance sheet, though it has been rapidly consuming cash reserves.

The company plans to use the proceeds to support the development of nomlabofusp, its lead compound being developed as a potential treatment for Friedreich’s ataxia, as well as other pipeline candidates. Funds will also go toward working capital and general corporate purposes, including research and development and pre-commercialization expenses.

Leerink Partners, Guggenheim Securities, Truist Securities, and William Blair are serving as joint bookrunning managers for the offering, which is expected to close around July 31, 2025, subject to customary closing conditions.

The offering is being conducted pursuant to a shelf registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission on May 24, 2024.

Larimar Therapeutics focuses on developing treatments for complex rare diseases using its intracellular delivery platform to design fusion proteins targeting rare diseases characterized by deficiencies in intracellular bioactive compounds, according to the press release statement. InvestingPro analysis indicates the stock is currently undervalued, with analyst price targets ranging from $10 to $40, suggesting significant upside potential. The company maintains a healthy current ratio of 7.48, though investors should note that additional ProTips and detailed financial analysis are available through InvestingPro’s comprehensive research reports.

In other recent news, Larimar Therapeutics has initiated a public offering of common stock shares and pre-funded warrants, providing investors the opportunity to purchase additional securities. This move comes as the company continues to focus on developing treatments for rare diseases. Additionally, Larimar has published data supporting the use of skin frataxin (FXN) as a surrogate endpoint for its Friedreich’s ataxia treatment, nomlabofusp. The research highlights the therapy’s mechanism of action and its potential to increase FXN levels in critical tissues.

The company has also announced a revised timeline for its Biologics License Application (BLA) submission for nomlabofusp, now targeting the second quarter of 2026. This change follows recommendations from the FDA, which advised on safety database requirements and the use of skin frataxin concentrations. The FDA’s guidance includes evaluating safety in at least 30 participants, with specific criteria for exposure duration and dosage levels. Despite the extended timeline, Larimar’s stock continues to hold an "Outperform" rating, indicating continued confidence from analysts.

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