Larimar’s drug may revolutionize rare neurological disease treatment

Oppenheimer has started coverage on Larimar Therapeutics LRMR, a biotech firm working on treatments for rare diseases.

The main treatment, Nomlabofusp, is seen as a unique therapy that addresses the cause of frataxin deficiency in Friedreich’s ataxia (FA), a rare neurodegenerative disease affecting about 20,000 patients worldwide.

Low levels of frataxin predict earlier disease onset and faster progression.

Oppenheimer predicts interim results by Q4 2024 and plans for Larimar to target pediatric patients, aiming for FDA approval by mid-2025.

They have given Larimar an Outperform rating and a price target of $26, estimating a 60% chance of accelerated FDA approval, with possible U.S. and European launches in 2027 and 2028 respectively, leading to $1.2 billion in global revenue by 2030.

Larimar’s Nomlabofusp is viewed as potentially more effective than existing treatments, like Reata/Biogen’s Skyclarys, which are limited to older patients.

Current Stock Price: LRMR is up 2.56% at $7.61.

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