Larimar Therapeutics (LRMR) AI Stock Analysis

• Market Cap: $149.18M
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: N/A
• EPS Growth: -55.32%
• Country: US
• Employees: 65
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -1.31
• Shares Outstanding: 64,027,890
• 10 Day Avg. Volume: 937,412
• 30 Day Avg. Volume: 1,039,883
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -1.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $18.86
• Price Target Upside: 709.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

Larimar Therapeutics' overall stock score is 36, reflecting significant financial instability due to persistent losses and negative cash flows. Although the balance sheet shows good equity and manageable debt, the lack of revenue generation is a major concern. Technical indicators show some bearish trends, and the valuation metrics highlight the absence of earnings and dividends. Strategic changes are necessary to improve its financial health and stock performance.

Positive Factors

Financial Position

Larimar Therapeutics ended the year with $184M in cash, expected to provide sufficient runway beyond multiple key inflection points.

Market Opportunity

Nomlabofusp has the potential to be the first therapy to address frataxin deficiency, which is the root cause of disease in Friedreich's ataxia.

Regulatory Approval

The FDA is open to considering skin frataxin levels as a potential novel surrogate endpoint for Accelerated Approval.

Negative Factors

Clinical Data

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

Confirmation of a drug-related anaphylaxis signal.

Stock Performance

Shares continue to trade at a significant discount in comparison to the nomlabofusp market opportunity.

Larimar Therapeutics Business Overview & Revenue Model

Company Description

Larimar Therapeutics, Inc., a clinical-stage biotechnology company, focuses on developing treatments for rare diseases using its novel cell penetrating peptide technology platform. Its lead product candidate is CTI-1601, which is in Phase 1 clinical trial for the treatment of Friedreich's ataxia, a rare, progressive, and fatal genetic disease. The company is based in Bala Cynwyd, Pennsylvania.

How the Company Makes Money

Larimar 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	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 Sheet		Cash, Cash Equivalents and Short-Term Investments
183.45M	86.79M	118.43M	70.10M	92.64M
	Total Assets
200.22M	95.94M	126.41M	78.67M	104.69M
	Total Debt
5.12M	5.55M	5.41M	6.00M	6.52M
	Net Debt
-28.10M	-21.20M	-21.42M	-64.09M	-61.63M
	Total Liabilities
28.41M	14.21M	15.50M	14.25M	14.99M
	Stockholders Equity
171.81M	81.72M	110.90M	64.41M	89.69M
Cash Flow		Free 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
-85.39M	33.35M	-90.96M	24.17M	17.09M
	Financing Cash Flow
161.88M	30.00K	75.26M	19.89M	93.59M

Larimar Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LRMR, the sentiment is Neutral. The current price of 2.33 is above the 20-day moving average (MA) of 2.03, below the 50-day MA of 2.50, and below the 200-day MA of 5.57, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 53.85 is Neutral, neither overbought nor oversold. The STOCH value of 75.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LRMR.

Larimar Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.31B	3.39	-40.42%	2.90%	18.11%	2.25%
TNXP	49 Neutral	$122.56M	―	-106.12%	―	29.94%	-241.81%
NKTR	48 Neutral	$144.25M	―	-124.10%	―	9.22%	60.01%
RAPT	39 Underperform	$115.98M	―	-77.09%	―	―	-2.29%
ALDX	37 Underperform	$158.83M	―	-58.54%	―	―	-47.28%
LRMR	36 Underperform	$149.18M	―	-63.58%	―	―	-55.32%
KOD	35 Underperform	$217.12M	―	-84.70%	―	―	32.58%

Larimar Therapeutics Corporate Events

Larimar Therapeutics Aligns Executive Incentives with Milestones

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.