On Tuesday, Baird adjusted its outlook on Larimar Therapeutics (NASDAQ:LRMR), a company specializing in the development of treatments for Friedreich's ataxia. The firm's analyst reduced the price target on the company's shares to $13.00, a decrease from the previous target of $16.00. Despite this change, the firm maintained its Outperform rating on the stock.
The company's shares, currently trading at $4.83, have experienced a significant decline of about 26% over the past week. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.
The revision follows the release of initial Open-Label Extension (OLE) data, which provided insights into the safety and efficacy of the company's leading drug candidate, nomlabofusp.
The data included safety profiles from 14 patients, as well as efficacy results from a subset of this group. The analyst noted that the data supports the potential for nomlabofusp to enhance frataxin levels over extended periods.
However, the variability observed in patient responses indicated that further dose optimization might be necessary. InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 13.1, while holding more cash than debt on its balance sheet.
The analyst also mentioned that while the data appears to align with the trajectory for a Biologics License Application (BLA) filing for nomlabofusp in the second half of 2025, there are still unanswered questions. Specifically, the two Serious Adverse Events (SAEs) reported in the study highlight areas that will require close monitoring in upcoming research.
The company's focus on developing treatments for Friedreich's ataxia, a rare genetic disease that causes difficulty walking, loss of sensation in the arms and legs, and impaired speech, is of significant interest to both the medical community and investors. With the latest data, Larimar Therapeutics continues to progress towards its goal of offering a novel therapeutic option for patients suffering from this debilitating condition.
As the company moves forward, the investment community will likely keep a watchful eye on Larimar Therapeutics' ongoing studies and any further developments regarding nomlabofusp's clinical journey.
The updated price target reflects the firm's current assessment of the company's prospects based on the available data. Notably, analyst consensus remains strongly bullish, with targets ranging from $12.49 to $36.00.
For deeper insights into Larimar's financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes additional ProTips and detailed financial metrics.
In other recent news, Larimar Therapeutics has been in the spotlight due to several significant developments. The company reported positive preliminary data from its ongoing study of nomlabofusp, a potential treatment for Friedreich’s ataxia. The drug has shown to increase and maintain tissue frataxin levels, which is crucial for addressing the fundamental cause of the disease. However, the study faced challenges with two patients withdrawing due to serious adverse events.
Despite these setbacks, analysts from firms such as H.C. Wainwright, Citi, and Guggenheim maintain a positive outlook. H.C. Wainwright reiterated its Buy rating with a $15.00 price target, while Leerink Partners and Citi maintained their Outperform and Buy ratings with $25.00 and $14.00 price targets respectively.
Guggenheim also maintained its Buy rating, setting a $26.00 price target. The company ended the third quarter of 2024 with $203.7 million in cash and investments, extending its financial runway into the second quarter of 2026. As Larimar moves forward, it aims to submit a Biologics License Application under an accelerated approval pathway in the second half of 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.