Buy Rating for Larimar Therapeutics: Optimism in Frataxin Replacement Therapy Despite Safety Concerns

Analyst Cory Jubinville, PhD from LifeSci Capital maintained a Buy rating on Larimar Therapeutics and keeping the price target at $22.00.

Cory Jubinville, PhD has given his Buy rating due to a combination of factors that highlight the potential of Larimar Therapeutics’ frataxin replacement therapy program, nomlabofusp, for Friedreich’s ataxia. The recent positive data from the ongoing open-label extension study showed significant improvements in skin frataxin levels and functional outcomes, suggesting the therapy’s potential to modify the disease. Despite initial safety concerns, particularly regarding anaphylaxis, the majority of surveyed physicians remain confident in the therapy’s risk-benefit profile, indicating a strong likelihood of adoption.
Additionally, the comparison with Palynziq, a therapy with a similar risk profile that achieved market success despite its high anaphylaxis rate, supports the notion that the unmet need in Friedreich’s ataxia could outweigh safety concerns. This context, combined with Larimar’s strategic plans for further data collection and the potential for accelerated approval, underpins the Buy rating, reflecting optimism about the company’s future prospects and the therapy’s market potential.