Oppenheimer Initiates Coverage on Larimar Therapeutics (LRMR) with Outperform Rating and $26 Price Target
In a move that has sent ripples through the biotech sector, Oppenheimer has initiated coverage on Larimar Therapeutics (LRMR), a clinical-stage biotechnology company specializing in developing treatments for rare diseases. The analysts have assigned an Outperform rating to the company and set a price target of $26, reflecting their confidence in Larimar’s future prospects.
At the heart of Oppenheimer’s bullish stance lies Larimar’s lead program, Nomlabofusp. This innovative therapy is being investigated as a potential treatment for Friedreich’s ataxia (FA), a debilitating neurodegenerative disease that affects approximately 20,000 individuals worldwide. What sets Nomlabofusp apart is its potential to modify the disease’s progression, directly targeting the key pathogenic mechanism of frataxin (FXN) deficiency, a fundamental factor in FA. Lower levels of FXN are linked to earlier onset, greater disease severity, and faster progression of the disease.
The analysts at Oppenheimer are particularly optimistic about the potential of Nomlabofusp, highlighting its unique ability to address the core cause of FA, unlike existing therapies. This differentiation could make Nomlabofusp a valuable addition to the treatment landscape for FA patients.
Oppenheimer’s bullish outlook is further bolstered by the anticipated release of interim data from an open-label extension (OLE) trial in the fourth quarter of 2024. This data is expected to provide further insights into the efficacy and safety of Nomlabofusp. Furthermore, Larimar is planning to expand its clinical trials to include pediatric patients and pursue accelerated approval through the FDA’s START Pilot Program. This ambitious strategy could lead to a potential FDA marketing application submission in the second half of 2025, setting the stage for a potential launch of Nomlabofusp in the US in 2027 and Europe in 2028.
Oppenheimer’s financial model projects that Nomlabofusp could generate global revenues of $1.2 billion by 2030, assuming a 60% chance of accelerated approval. This optimistic forecast underscores the significant market opportunity for Nomlabofusp and highlights the potential for Larimar to become a major player in the rare disease space.
It’s important to note that Nomlabofusp faces competition from other treatments for FA, such as Skyclarys, developed by Reata and acquired by Biogen Inc (BIIB) for $7.3 billion in 2023, and vatiquinone, developed by PTC Therapeutics Inc (PTC). However, Oppenheimer emphasizes that Nomlabofusp stands out due to its disease-modifying potential and its ability to treat a broader patient demographic, including pediatric and adolescent FA patients. This strategic focus could give Nomlabofusp a significant advantage in the market.
The news of Oppenheimer’s positive coverage has been met with enthusiasm by investors, with LRMR stock experiencing a 2.56% increase to $7.61 at the close of trading on Wednesday.
The initiation of coverage by Oppenheimer represents a significant milestone for Larimar Therapeutics and underscores the growing interest in its potential to address the unmet needs of patients with rare diseases. As Larimar progresses towards its clinical goals, the company’s stock will be closely watched by investors eager to see if Nomlabofusp can live up to its potential.
