Larimar Therapeutics (LRMR) AI Stock Analysis

• Market Cap: $291.86M
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.90
• Revenue Growth: N/A
• EPS Growth: -67.41%
• Country: US
• Employees: 65
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.61
• Shares Outstanding: 85,590,390
• 10 Day Avg. Volume: 986,237
• 30 Day Avg. Volume: 1,038,320
• PEG Ratio: -0.05
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.33
• Enterprise Value/Market Cap: 0.28
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -468.01
• Enterprise Value/Ebitda: -0.60
• 1Y Price Target: $21.50
• Price Target Upside: 545.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -1.82
• Revenue Forecast (FY): $2.32M

• Rating: 45 Neutral
• Price Target: $3.50 ▲(5.11% Upside)

Score is held down primarily by weak financial performance (no revenue, widening losses, and significant cash burn) and bearish technical signals (below key moving averages with negative MACD). Positive clinical/regulatory progress for the lead program provides support, but valuation remains constrained by ongoing losses and no dividend.

Positive Factors

Low Financial Leverage

Low financial leverage provides Larimar Therapeutics with flexibility to raise additional capital without significantly increasing financial risk, which is crucial for sustaining long-term R&D efforts.

Focus on Rare Diseases

Focusing on rare diseases positions Larimar in a niche market with less competition and potential for premium pricing, enhancing long-term revenue prospects if therapies are successfully developed and approved.

Equity Financing

Reliance on equity financing allows Larimar to fund its R&D without incurring debt, maintaining financial stability and enabling continued investment in its therapeutic pipeline.

Negative Factors

Negative Profitability

Negative profitability and cash flow indicate ongoing financial strain, requiring continuous external funding to sustain operations, which poses long-term sustainability risks if not addressed.

High R&D Expenses

High R&D expenses without consistent revenue generation can lead to prolonged periods of financial instability, challenging the company's ability to achieve profitability and sustain operations.

Lack of Revenue Growth

The absence of revenue growth reflects ongoing developmental stages and reliance on future product approvals, which may delay financial stability and investor confidence in the company's long-term prospects.

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 in a typical early-stage biotech phase with no consistent revenue, substantial R&D expenses, and reliance on equity financing. While the company maintains a low leverage position, the ongoing cash burn and negative profitability highlight the risks inherent in its business model.

Income Statement

Larimar Therapeutics shows a negative net profit margin and EBIT margin due to significant losses, despite a small amount of revenue in TTM. There is no consistent revenue generation, which is typical for early-stage biotech companies. The company has not demonstrated revenue growth, reflecting ongoing developmental stages with high R&D expenses.

Balance Sheet

The company's balance sheet is moderately stable with a low debt-to-equity ratio, indicating limited financial leverage. However, the return on equity is negative due to significant net losses, and the equity ratio is strong, reflecting significant equity financing.

Cash Flow

The cash flow statement reflects substantial negative operating cash flow, typical for biotech firms in R&D phases. There is also a negative free cash flow due to high cash burn, but financing activities have supported cash reserves. The cash flow ratios indicate cash outflows exceeding income, stressing the importance of external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-175.00K	0.00	0.00	0.00	0.00	-155.00K
EBITDA	-137.65M	-90.57M	-41.45M	-36.21M	-50.14M	-42.65M
Net Income	-132.00M	-80.60M	-36.95M	-35.35M	-50.64M	-42.33M
Balance Sheet
Total Assets	187.35M	200.22M	95.94M	126.41M	78.67M	104.69M
Cash, Cash Equivalents and Short-Term Investments	175.44M	183.45M	86.79M	118.43M	70.10M	92.64M
Total Debt	4.35M	5.12M	5.55M	5.41M	6.00M	6.52M
Total Liabilities	48.31M	28.41M	14.21M	15.50M	14.25M	14.99M
Stockholders Equity	139.04M	171.81M	81.72M	110.90M	64.41M	89.69M
Cash Flow
Free Cash Flow	-96.76M	-71.28M	-33.62M	-27.67M	-42.44M	-42.26M
Operating Cash Flow	-96.49M	-70.76M	-33.46M	-27.57M	-42.10M	-42.20M
Investing Cash Flow	85.51M	-85.39M	33.35M	-90.96M	24.17M	17.09M
Financing Cash Flow	65.32M	161.88M	30.00K	75.26M	19.89M	93.59M

Larimar Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 3.33 is below the 20-day moving average (MA) of 3.60, below the 50-day MA of 3.60, and above the 200-day MA of 3.32, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 43.76 is Neutral, neither overbought nor oversold. The STOCH value of 28.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LRMR.

Larimar Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VNDA	60 Neutral	$455.04M	-5.38	-16.72%	―	11.12%	-406.76%
CADL	56 Neutral	$340.92M	-11.10	-70.17%	―	―	68.53%
OMER	52 Neutral	$927.38M	-6.48	―	―	―	12.32%
NMRA	52 Neutral	$359.24M	-1.47	-104.35%	―	―	20.71%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
FHTX	49 Neutral	$356.84M	-5.32	―	―	-3.91%	37.89%
LRMR	45 Neutral	$291.86M	―	-78.24%	―	―	-67.41%

Larimar Therapeutics Corporate Events

Larimar advances nomlabofusp toward accelerated Friedreich’s ataxia approval

On January 12, 2026, Larimar Therapeutics posted an updated corporate slide deck outlining the progress of its lead candidate nomlabofusp toward registration as what it positions as the first potential disease-modifying therapy for Friedreich’s ataxia, supported by data from four completed clinical studies plus an ongoing open-label trial showing dose-dependent increases in tissue frataxin. The materials emphasize strong clinician demand for frataxin-targeted treatments, the company’s strategy to pursue accelerated U.S. approval using frataxin levels as a novel surrogate endpoint with key regulatory milestones anticipated in 2026 and a potential U.S. launch in early 2027, and an extensive intellectual property portfolio and market exclusivity framework that, if approval is obtained, could secure a long runway of protection for nomlabofusp in the U.S. and Europe, reinforcing Larimar’s competitive position in this rare-disease niche.

The most recent analyst rating on (LRMR) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Larimar Therapeutics stock, see the LRMR Stock Forecast page.

Larimar Therapeutics Executes Strategic Stock Exchange Agreement

On December 16, 2025, Larimar Therapeutics executed an exchange agreement with Blue Owl Healthcare Opportunities IV Public Investments LP, swapping 2.5 million shares of common stock for 250,000 shares of Series A convertible preferred stock. This preferred stock offers unique features such as conversion rights with a cap on beneficial ownership to maintain shareholder equity balance, limited voting rights, and a ranking structure prioritizing liquidation proceeds. These strategic adjustments signal the company’s efforts to optimize its capital structure and ensure financial stability for stakeholders without affecting their equity positions significantly.

The most recent analyst rating on (LRMR) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Larimar Therapeutics stock, see the LRMR Stock Forecast page.

Larimar Therapeutics Highlights Promising Friedreich’s Ataxia Data

On November 10, 2025, Larimar Therapeutics announced an updated slide presentation highlighting the potential of nomlabofusp as a treatment for Friedreich’s Ataxia. The open-label study data showed promising results, with participants achieving significant improvements in frataxin levels and clinical outcomes. Despite some cases of anaphylaxis, the therapy was generally well tolerated, prompting Larimar to adjust its dosing regimen to mitigate risks. The company aims to submit a Biologics License Application by Q2 2026, seeking accelerated approval based on these results, which could position nomlabofusp as the first disease-modifying therapy for this condition.

The most recent analyst rating on (LRMR) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Larimar Therapeutics stock, see the LRMR Stock Forecast page.