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Larimar Therapeutics, Inc. (LRMR)
NASDAQ:LRMR
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Larimar Therapeutics (LRMR) AI Stock Analysis

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LRMR

Larimar Therapeutics

(NASDAQ:LRMR)

Rating:49Neutral
Price Target:
Larimar Therapeutics' stock score reflects its early-stage biotech status with high R&D costs, no consistent revenue, and reliance on equity financing. Despite positive short-term technical indicators suggesting upward momentum, the lack of profitability and a negative P/E ratio weigh heavily on the stock. Valuation concerns and the absence of earnings call insights further impact the score.
Positive Factors
Regulatory Progress
The FDA expressed openness to use skin FXN concentrations as a reasonably likely surrogate endpoint, which could lead to a path forward for accelerated approval.
Safety Profile
No naive patient receiving nomlabofusp has experienced hypersensitivity or anaphylaxis, and all reported cases have been in patients reintroduced to the drug, which suggests a favorable safety profile.
Negative Factors
Financial Performance
The price target is reduced to $12 from $14 due to the delay in nomlabofusp launch to 2027.
Regulatory Delay
The BLA submission for nomlabofusp is delayed based on FDA feedback on the safety database.

Larimar Therapeutics (LRMR) vs. SPDR S&P 500 ETF (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 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
32
Negative
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
45
Neutral
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.00
Gross Profit0.00-311.00K-272.00K-326.00K-155.00K
EBITDA-80.29M-41.45M-35.08M-50.14M-42.65M
Net Income-80.60M-36.95M-34.18M-50.31M-42.33M
Balance Sheet
Total Assets200.22M95.94M126.41M78.67M104.69M
Cash, Cash Equivalents and Short-Term Investments183.45M86.79M118.43M70.10M92.64M
Total Debt5.12M5.55M5.41M6.00M6.52M
Total Liabilities28.41M14.21M15.50M14.25M14.99M
Stockholders Equity171.81M81.72M110.90M64.41M89.69M
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-85.39M33.35M-90.96M24.17M17.09M
Financing Cash Flow161.88M30.00K75.26M19.89M93.59M

Larimar Therapeutics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.75
Price Trends
50DMA
2.75
Positive
100DMA
2.54
Positive
200DMA
3.97
Negative
Market Momentum
MACD
0.21
Negative
RSI
67.27
Neutral
STOCH
69.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LRMR, the sentiment is Positive. The current price of 3.75 is above the 20-day moving average (MA) of 3.28, above the 50-day MA of 2.75, and below the 200-day MA of 3.97, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 67.27 is Neutral, neither overbought nor oversold. The STOCH value of 69.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (46)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$334.90M-91.44%-2.04%83.49%
62
Neutral
$432.53M-189.46%-3.24%31.00%
49
Neutral
$240.74M-50.77%-54.29%
46
Neutral
C$201.68M-3.28-23.14%1.87%20.75%-0.36%
39
Underperform
$230.51M-75.60%-2.29%
37
Underperform
$331.22M-65.19%-47.28%
35
Underperform
$364.07M-108.92%32.58%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LRMR
Larimar Therapeutics
3.75
-5.77
-60.61%
NKTR
Nektar Therapeutics
24.58
3.88
18.74%
TNXP
Tonix Pharma
44.72
-10.28
-18.69%
ALDX
Aldeyra Therapeutics
5.44
1.29
31.08%
KOD
Kodiak Sciences
8.25
5.00
153.85%
RAPT
RAPT Therapeutics
12.65
-14.07
-52.66%

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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: May 02, 2025