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Larimar Therapeutics, Inc. (LRMR)
NASDAQ:LRMR

Larimar Therapeutics (LRMR) AI Stock Analysis

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Larimar Therapeutics

(NASDAQ:LRMR)

31Underperform
Larimar Therapeutics faces significant financial instability due to a lack of revenue, persistent losses, and negative cash flows. While the balance sheet's strong equity position is a positive aspect, the overall financial health is weak, heavily impacting the stock score. The technical analysis suggests bearish sentiment with potential for a short-term rebound due to oversold conditions. Valuation metrics are unfavorable, given the negative P/E ratio and lack of dividends, further contributing to the low score. The company requires strategic changes to improve its financial performance and investor appeal.
Positive Factors
Drug Designations
Nomlabofusp previously received Rare Pediatric Disease Designation, Fast Track Designation, and Orphan Drug Designation from the FDA, as well as Orphan Drug Designation by the European Commission and PRIME designation by the EMA.
Financial Position
LRMR ended 2024 with $183.5M in cash, cash equivalents, and marketable securities, which provides runway into 2Q26.
Regulatory Approval
The FDA is open to considering skin frataxin levels as a potential novel surrogate endpoint for Accelerated Approval.
Negative Factors
Anaphylaxis Risk
Confirmation of a drug-related anaphylaxis signal.
Market Reaction
The weakness in shares is likely due to the slight delay in data and the disclosure of a protocol amendment to add antihistamine premedication to mitigate the risk of anaphylaxis.
Safety Concerns
There was some debate following two serious adverse events/SAEs in the last update.

Larimar Therapeutics (LRMR) vs. S&P 500 (SPY)

Larimar Therapeutics Business Overview & Revenue Model

Company DescriptionLarimar Therapeutics, Inc. (LRMR) is a clinical-stage biotechnology company focused on developing treatments for rare, complex diseases. The company is headquartered in the United States and operates within the pharmaceutical and biotechnology sectors. Its core product is CTI-1601, a novel protein replacement therapy designed to address Friedreich's ataxia, a debilitating genetic disorder. Larimar Therapeutics is committed to advancing its pipeline of therapeutics to improve the lives of patients with unmet medical needs.
How the Company Makes MoneyLarimar Therapeutics primarily makes money through the development and potential commercialization of its proprietary therapies, with a focus on rare diseases such as Friedreich's ataxia. The company's revenue model includes securing funding through partnerships, grants, and possibly licensing agreements. As a biotechnology firm, Larimar Therapeutics is also involved in research and development activities, which may attract investment and collaborations with larger pharmaceutical companies. Additionally, the company may generate future revenue from the successful approval and commercialization of its therapies, leading to sales revenue or royalties.

Larimar Therapeutics Financial Statement Overview

Summary
Larimar Therapeutics is facing significant financial challenges, characterized by a lack of revenue, persistent losses, and negative cash flows. While the balance sheet shows strong equity and manageable debt levels, the company's inability to generate revenue or positive cash flow raises significant concerns about its long-term viability. Strategic changes and effective revenue generation strategies are crucial for future improvement.
Income Statement
10
Very Negative
Larimar Therapeutics has consistently reported zero revenue over the years, indicating significant room for improvement in its business model and market penetration. The company’s net income and EBIT have remained negative, reflecting ongoing operational challenges and high costs relative to nonexistent revenue. This lack of revenue growth and persistent losses highlight financial instability and an urgent need for strategic realignment.
Balance Sheet
35
Negative
The company's balance sheet shows a strong equity position with stockholders' equity consistently high relative to total assets, indicating a good equity ratio. However, the company carries a modest amount of debt, reflected in a relatively low debt-to-equity ratio, suggesting limited leverage risk. Despite this, the persistent absence of revenue raises concerns about the sustainability of its financial position.
Cash Flow
20
Very Negative
Larimar Therapeutics has consistently reported negative free cash flow, driven by high operating losses. The company shows a heavy reliance on external financing to sustain operations, as indicated by significant fluctuations in financing cash flow. The operating cash flow to net income ratio is negative, highlighting cash flow challenges and raising concerns about the company's ability to fund its operations without continued external support.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.000.000.000.00
Gross Profit
0.00-311.00K-272.00K-326.00K-155.00K
EBIT
-90.89M-41.76M-36.53M-50.47M-42.80M
EBITDA
-90.89M-41.45M-35.08M-50.14M-42.65M
Net Income Common Stockholders
-80.60M-36.95M-34.18M-50.31M-42.33M
Balance SheetCash, Cash Equivalents and Short-Term Investments
183.45M86.79M118.43M70.10M92.64M
Total Assets
200.22M95.94M126.41M78.67M104.69M
Total Debt
5.12M5.55M5.41M6.00M6.52M
Net Debt
-28.10M-21.20M-21.42M-64.09M-61.63M
Total Liabilities
28.41M14.21M15.50M14.25M14.99M
Stockholders Equity
171.81M81.72M110.90M64.41M89.69M
Cash FlowFree Cash Flow
-71.28M-33.62M-27.67M-42.44M-42.26M
Operating Cash Flow
-70.76M-33.46M-27.57M-42.10M-42.20M
Investing Cash Flow
-85.39M33.35M-90.96M24.17M17.09M
Financing Cash Flow
161.88M30.00K75.26M19.89M93.59M

Larimar Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.96
Price Trends
50DMA
2.94
Negative
100DMA
4.11
Negative
200DMA
5.97
Negative
Market Momentum
MACD
-0.26
Positive
RSI
29.97
Positive
STOCH
19.69
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LRMR, the sentiment is Negative. The current price of 1.96 is below the 20-day moving average (MA) of 2.39, below the 50-day MA of 2.94, and below the 200-day MA of 5.97, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 29.97 is Positive, neither overbought nor oversold. The STOCH value of 19.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LRMR.

Larimar Therapeutics Risk Analysis

Larimar Therapeutics disclosed 80 risk factors in its most recent earnings report. Larimar Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Larimar Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$11.50B27.408.05%17.35%151.40%
68
Neutral
$5.28B22.8419.71%52.97%
58
Neutral
$170.59M5.05-24.25%-68.00%-134.79%
54
Neutral
$3.05B-214.50%29.01%23.93%
48
Neutral
$6.36B1.14-49.00%2.63%17.14%1.39%
46
Neutral
$2.81B-19.20%-89.95%-123.71%
31
Underperform
$125.49M-63.58%-55.32%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LRMR
Larimar Therapeutics
1.96
-5.26
-72.85%
BMRN
BioMarin Pharmaceutical
60.26
-27.02
-30.96%
SRPT
Sarepta Therapeutics
54.43
-71.96
-56.93%
RARE
Ultragenyx Pharmaceutical
32.43
-17.80
-35.44%
VYGR
Voyager Therapeutics
3.09
-5.97
-65.89%
CRSP
Crispr Therapeutics AG
32.65
-31.44
-49.06%

Larimar Therapeutics Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Larimar Therapeutics Aligns Executive Incentives with Milestones
Neutral
Jan 27, 2025

On January 22, 2025, Larimar Therapeutics’ Board of Directors granted performance-based restricted stock units (PSUs) to key executives, including the CEO, CFO, Chief Development Officer, and Chief Medical Officer. These awards are contingent on achieving certain regulatory milestones, with the vesting process split into two stages, signaling Larimar’s commitment to aligning executive incentives with strategic goals and regulatory success.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.