Larimar Therapeutics selloff a buying opportunity, says JonesResearch

JonesResearch analyst Catherine Novack reiterates a Buy rating on Larimar Therapeutics (LRMR) with a $14 price target after the company reported initial data from a Phase 2 study for nomlabofusp in Friedreich’s ataxia. The negative stock reaction is likely due to two serious adverse events leading to discontinuation and “mismatched expectations” for dose level and efficacy, the analyst tells investors in a research note. The firm says the efficacy is in line with guidance and had minimal expectations of clinical efficacy at this data cut, especially given the short dosing duration. It is “not overly concerned” about the adverse events and says the investment thesis remains unchanged. As such, JonesResearch views today’s weakness as a buying opportunity ahead of the “more informative” 50 mg readout in mid 2025.