Buy Rating Reaffirmed for Larimar Therapeutics Post FDA Clinical Hold Lift and Positive Drug Trial Trajectory

Leerink Partners analyst Joseph Schwartz has reiterated their bullish stance on LRMR stock, giving a Buy rating today.

Joseph Schwartz has given his Buy rating due to a combination of factors surrounding Larimar Therapeutics’ recent developments. His optimism is grounded in the positive trajectory of the company’s drug candidate, nomlabofusp, which is aimed at treating Friedreich’s ataxia. Schwartz’s assessment comes after the lift of the clinical hold on the drug by the FDA, signaling regulatory confidence in its safety profile. The successful progress in clinical trials, particularly the impressive Phase 2 data, further strengthens his recommendation. Additionally, the anticipation of interim Phase 2 open-label extension data, which could showcase the drug’s long-term safety and efficacy, plays a pivotal role in his positive outlook.

Schwartz also considers the strategic implications of the upcoming data, which may position nomlabofusp for an accelerated approval pathway. The potential for using skin or buccal cells as a biomarker and the surrogate endpoint’s predictive value for clinical outcomes could be significant milestones. The proactive approach of Larimar Therapeutics, as evidenced by their plans to increase dosages in ongoing trials, aligns with Schwartz’s view that the company is well-positioned for future success. His reiteration of an Outperform status is underpinned by these developments and the potential for a Biologics License Application submission slated for the second half of 2025, which he believes could substantially benefit the stock’s valuation.

Schwartz covers the Healthcare sector, focusing on stocks such as Applied Therapeutics, Regulus, and Ultragenyx Pharmaceutical. According to TipRanks, Schwartz has an average return of 0.0% and a 38.43% success rate on recommended stocks.

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

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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.