Optimistic Buy Rating for Larimar Therapeutics Backed by Positive Phase 2 Results and Strategic FDA Discussions

Larimar Therapeutics (LRMR – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on May 10. Analyst Joseph Schwartz from Leerink Partners reiterated a Buy rating on the stock and has a $25.00 price target.

Joseph Schwartz has given his Buy rating due to a combination of factors surrounding Larimar Therapeutics’ progress in addressing Friedreich’s ataxia (FA). The company reported positive outcomes from its Phase 2 study, showcasing the potential of its lead drug nomlabofusp to tackle the root cause of FA. This optimism is further bolstered by the company’s strategic move towards discussing with FDA the use of frataxin as a novel surrogate endpoint, which may pave the way for accelerated approval. Schwartz acknowledges the FDA’s recognition of the unmet need in FA treatment and the critical role of frataxin deficiency in the disease’s mechanism, which collectively underpin his affirmative stance on LRMR’s stock.
Furthermore, Schwartz’s Buy rating is reinforced by the initiation of the open-label extension (OLE) trial and the company’s active efforts in patient enrollment and site activation. The anticipation of interim Phase 2 OLE data in the near future, which will provide insights into long-term safety and efficacy, also contributes to the positive outlook. The underlying science of nomlabofusp, a recombinant fusion protein designed to deliver frataxin protein to mitochondria, holds promise for delivering a durable therapeutic benefit, which is a key factor in Schwartz’s optimistic valuation of Larimar Therapeutics’ stock.

In another report released on May 10, JMP Securities also reiterated a Buy rating on the stock with a $25.00 price target.

Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LRMR in relation to earlier this year.

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Larimar Therapeutics (LRMR) Company Description:

Zafgen, Inc. is a biopharmaceutical company, which engages in the development of novel therapies for patients affected by complex metabolic diseases. It focuses on the study of MetAP2 inhibitors in both common and rare metabolic disorders. The firm also advancing programs for type 2 diabetes, Prader-Willi syndrome, and liver diseases. The company was founded on November 22, 2005 and is headquartered in Boston, MA.