Larimar Therapeutics (LRMR) AI Stock Analysis

• Market Cap: $280.74M
• Dividend Yield: N/A
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.84
• 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: 1,302,719
• 30 Day Avg. Volume: 1,004,380
• 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: 0.63
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -1.01K
• Enterprise Value/Ebitda: -1.29
• 1Y Price Target: $21.00
• Price Target Upside: 540.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $3.50 ▲(6.71% 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

Lead candidate advancement / regulatory path

Company targets accelerated approval for nomlabofusp as a potential first disease-modifying therapy for Friedreich’s ataxia. If regulators accept frataxin as a surrogate and grant approval, Larimar gains first-mover clinical/market advantages and durable exclusivity in a small, underserved rare-disease market.

Low leverage / balance sheet flexibility

The balance sheet shows minimal debt relative to equity and sizable assets for a development-stage biotech. Low leverage lowers default risk, preserves capacity to raise non-distressed financing, and extends the firm's operational runway to complete development milestones without immediate solvency pressure.

Robust early clinical evidence

Consistent dose-dependent frataxin increases across several completed studies and ongoing open-label data strengthen biological proof-of-concept. This durable clinical evidence improves the odds of regulatory acceptance of surrogate endpoints and lowers technical risk in late-stage development.

Negative Factors

High cash burn

Sustained operating and free cash outflows near $100M TTM materially deplete resources and require frequent capital raises. Persistent cash burn increases dilution risk, may delay programs if financing terms deteriorate, and reduces strategic optionality over the coming 2–6 months without new funding.

No revenue and widening losses

As a pre-revenue developer, Larimar’s rapidly expanding net losses amplify reliance on external capital. Continued widening losses without product revenue increase financing frequency and execution risk, making sustained investment and portfolio advancement contingent on successful fundraises or partnerships.

Clinical safety / regulatory risk (anaphylaxis)

Reported anaphylaxis cases that required dosing changes represent a persistent safety signal. Such risks can complicate regulatory review, necessitate additional studies or risk-mitigation measures, restrict labeling or use, and raise post-approval monitoring costs—impacting long-term commercial uptake.

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

Development-stage profile with essentially no revenue and materially widening losses (TTM net loss ~$132M). Cash burn is heavy (TTM operating cash flow about -$96.5M / free cash flow about -$96.8M), increasing reliance on future financing. Partially offset by a relatively strong balance sheet with low debt (~$4.3M) versus equity (~$139.0M).

Income Statement

LRMR continues to generate essentially no revenue (including TTM (Trailing-Twelve-Months)), while losses have widened materially versus prior years. Net loss increased from about $36.9M (2023) and $80.6M (2024) to roughly $132.0M in TTM (Trailing-Twelve-Months), indicating a higher burn rate and limited near-term operating leverage. The positive is that loss visibility is fairly consistent with a development-stage biotech profile, but the lack of revenue and accelerating losses weigh heavily on the income statement quality.

Balance Sheet

The balance sheet is a relative bright spot: leverage is low, with total debt around $4.3M in TTM (Trailing-Twelve-Months) against ~$139.0M of equity (low debt-to-equity). Total assets remain solid (~$187.4M TTM (Trailing-Twelve-Months)), providing financial flexibility. The key weakness is ongoing negative returns on equity driven by sustained net losses, which can pressure equity over time if cash burn continues.

Cash Flow

Cash generation remains weak with operating cash flow of about -$96.5M in TTM (Trailing-Twelve-Months) and free cash flow of about -$96.8M, reflecting substantial ongoing investment and operating burn. Free cash flow tracks net income closely (roughly 1x), suggesting losses are largely cash-based rather than accounting-driven—helpful for transparency but negative for funding needs. While the reported free cash flow growth is positive in TTM (Trailing-Twelve-Months), the absolute level of cash outflow remains high and meaningfully worse than prior years (e.g., -$33.6M in 2023; -$71.3M in 2024).

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: 3.28
• 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 Negative. The current price of 3.28 is below the 20-day moving average (MA) of 3.42, below the 50-day MA of 3.59, and below the 200-day MA of 3.43, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 41.07 is Neutral, neither overbought nor oversold. The STOCH value of 32.53 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	$449.13M	―	-16.72%	―	11.12%	-406.76%
CADL	56 Neutral	$313.47M	-9.46	-70.17%	―	―	68.53%
NMRA	52 Neutral	$337.52M	-1.34	-104.35%	―	―	20.71%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OMER	50 Neutral	$816.06M	-5.32	―	―	―	12.32%
FHTX	49 Neutral	$329.81M	-4.41	―	―	-3.91%	37.89%
LRMR	45 Neutral	$280.74M	-1.59	-78.24%	―	―	-67.41%

Larimar Therapeutics Corporate Events

Larimar Therapeutics executes preferred stock exchange and amendment

On January 21, 2026, Larimar Therapeutics entered into an exchange agreement with Blue Owl Healthcare Opportunities IV Public Investments LP under which the investor agreed to swap 2.5 million shares of Larimar common stock for 250,000 shares of the company’s Series A convertible preferred stock, a non-voting “toothless” preferred security that is convertible into common stock at a 10-to-1 ratio and participates equally with common shareholders in liquidation proceeds. In connection with this transaction, Larimar filed a Certificate of Amendment in Delaware on January 21, 2026 to double the authorized Series A preferred share count to 500,000, with the exchange expected to close on January 23, 2026 and the new preferred shares to be issued in a private, unregistered transaction relying on a statutory exemption, reflecting a balance-sheet and capital-structure adjustment rather than an immediate change in total economic ownership.

The most recent analyst rating on (LRMR) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Larimar Therapeutics stock, see the LRMR Stock Forecast page.

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.