Buy Rating for Larimar Therapeutics Backed by Strong Clinical and Financial Outlook

Analyst Jonathan Wolleben from JMP Securities reiterated a Buy rating on Larimar Therapeutics (LRMR – Research Report) and keeping the price target at $25.00.

Jonathan Wolleben’s rating is based on a comprehensive evaluation of Larimar Therapeutics’ developmental and financial milestones, particularly regarding their lead candidate, nomlabofusp. The company’s proactive approach in opening sites and dosing patients in its open-label extension study, along with ongoing discussions with the FDA for accelerated approval, are seen as positive indicators. The anticipation of submitting a Biologics License Application (BLA) in the second half of 2025 further strengthens the company’s position. Additionally, the initial data expected in the fourth quarter of 2024 on long-term safety and frataxin levels, which are crucial for understanding the drug’s efficacy, supports Wolleben’s optimistic view.

Wolleben also considers the company’s financial health, noting that Larimar Therapeutics finished the first quarter of 2024 with a solid cash position, providing the company with a financial runway into 2026. This financial stability is key for the company’s ongoing research and development efforts. Furthermore, the Phase 2 results, which suggest the potential for accelerated approval based on frataxin levels, substantially mitigate the risks associated with the drug’s development. These factors combined lead Wolleben to believe that nomlabofusp is a standout candidate in the treatment pipeline for Friedreich’s Ataxia, warranting a Buy rating for Larimar Therapeutics’ stock.

In another report released yesterday, LifeSci Capital also maintained a Buy rating on the stock with a $27.00 price target.

TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.

Larimar Therapeutics (LRMR) Company Description:

Zafgen, Inc. is a biopharmaceutical company, which engages in the development of novel therapies for patients affected by complex metabolic diseases. It focuses on the study of MetAP2 inhibitors in both common and rare metabolic disorders. The firm also advancing programs for type 2 diabetes, Prader-Willi syndrome, and liver diseases. The company was founded on November 22, 2005 and is headquartered in Boston, MA.