Larimar therapeutics: Deerfield funds buy $10.8m in shares

On July 31, 2025, several Deerfield entities, including Deerfield Private Design Fund III, L.P., Deerfield Private Design Fund IV, L.P., and Deerfield Healthcare Innovations Fund, L.P., purchased shares of Larimar Therapeutics, Inc. (NASDAQ:LRMR), a $275 million market cap biotechnology company. The purchases, all executed at a price of $3.20 per share, totaled $10,840,083.20. InvestingPro data shows the stock has fallen 9% in the past week, with analyst price targets ranging from $10 to $40.

Specifically, Deerfield Private Design Fund III, L.P. acquired 3,387,529 shares, Deerfield Private Design Fund IV, L.P. acquired 3,387,539 shares and Deerfield Healthcare Innovations Fund, L.P. acquired 2,599,932 shares. Following these transactions, Deerfield Private Design Fund III, L.P. holds 9,538,918 shares, Deerfield Private Design Fund IV, L.P. holds 9,538,945 shares and Deerfield Healthcare Innovations Fund, L.P. holds 7,321,129 shares. Deerfield Partners, L.P. holds 4,207,982 shares. According to InvestingPro, LRMR holds more cash than debt on its balance sheet, with earnings results expected on August 7.

James E. Flynn, also a reporting owner due to his relationships with the Deerfield entities, is a Director by Deputization at Larimar Therapeutics. Jonathan S. Leff, a partner in Deerfield Management, serves as a director of Larimar Therapeutics, Inc. (NASDAQ:LRMR). Get comprehensive analysis and 8 additional key insights about LRMR with an InvestingPro subscription.

In other recent news, Larimar Therapeutics has successfully raised $69 million through a public offering, 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 offering was initially priced to generate $60 million in gross proceeds, excluding underwriting discounts and expenses, but ultimately surpassed that amount. Following this offering, Jones Trading lowered its price target for Larimar Therapeutics to $10, down from $12, while maintaining a Buy rating. The firm attributed the target reduction to dilution from the recent public offering. Larimar’s cash position is now approximately $185 million, expected to sustain operations into the fourth quarter of 2026. These developments reflect the company’s strategic financial maneuvers in the current market.

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