H.C. Wainwright initiated coverage of Larimar with a ‘Buy’ rating and a $10 price target on Thursday.
- The firm highlighted the company’s regulatory progress for its lead asset, nomlabofusp, as a key driver of value.
- Larimar Therapeutics submitted the first module of its rolling Biologics License Application (BLA) for nomlabofusp earlier this week.
- H.C. Wainwright forecasts a commercial launch of nomlabofusp in 2027, with first-year U.S. sales of $47.9 million.
Shares of Larimar Therapeutics (LRMR) closed merely 2% higher on Thursday despite Wall Street’s bullish stance, extending recent weakness after clinical data raised safety concerns about its drug, nomlabofusp.
H.C. Wainwright Assumes Coverage
H.C. Wainwright initiated coverage of Larimar with a ‘Buy’ rating and a $10 price target on Thursday. The new price target represents a potential upside of about 212% from the stock’s last closing price.
The firm highlighted the company’s regulatory progress for its lead asset, nomlabofusp, as a key driver of value.
Priority Review Expected For BLA
The analyst expects Larimar to submit its full Biologics License Application (BLA) for nomlabofusp later this year. The note stated the filing is likely to receive priority review from the FDA, which could shorten the standard review timeline and speed up a potential approval decision.
2027 Launch And Long-Term Sales Outlook
H.C. Wainwright forecasts a commercial launch of nomlabofusp in 2027, with first-year U.S. sales of $47.9 million. The firm projects peak annual sales could exceed $1.1 billion by 2040, reflecting strong commercial potential in the rare disease space.
Larimar Therapeutics submitted the first module of its rolling Biologics License Application (BLA) for nomlabofusp earlier this week, seeking accelerated approval for Friedreich’s ataxia, a rare, inherited genetic disorder that causes progressive nervous system damage, leading to poor balance, lack of coordination, and loss of mobility. The company also reported positive long-term open-label data showing sustained increases in the protein that is fundamentally deficient in Friedreich's ataxia.
Despite the regulatory progress and supportive FDA feedback, LRMR shares fell sharply on Monday because investors viewed the submission as partial, with the remaining modules — including the critical Chemistry, Manufacturing, and Controls section — not expected until the second half of 2026. Investors were also concerned about the safety data around the drug. Anaphylaxis occurred in 10 of 41 participants in an open-label study, and 21 participants discontinued, the company said, sparking concerns. The company, however, clarified that all anaphylaxis cases resolved with standard treatment.
However, Citi recommended buying Larimar shares on the stock’s weakness on Tuesday, and kept a ‘Buy’ rating on Larimar with a $14 target.
How Did LRMR Retail Traders React?
On Stocktwits, retail sentiment around LRMR stock stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume remained at ‘extremely high’ levels.
A Stocktwits user termed the stock as “meaningfully undervalued.”
According to data from Koyfin, all ten analysts covering LRMR rate it 'Buy' or higher. The stock has an average price target of $14.89, representing potential upside of about 364% from the last close.
LRMR stock has fallen 14% year-to-date.
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