Larimar Therapeutics falls after $60 mln equity raise

Larimar Therapeutics

30/07/2025 12:18

** Shares of Larimar Therapeutics LRMR.O down 9.6% premarket to $3.19 after follow-on offering

** Bala Cynwyd, Pennsylvania-based biotech late Tues announced pricing 18.75 mln shares at $3.20 for total gross proceeds of $60 mln

** Offering price represents 9.3% discount to stock's last close

** Deerfield Management. LRMR's largest shareholder, indicated interest in purchasing offering shares, per the prospectus

** LRMR intends to use net offering proceeds to support development of its lead compound, nomlabofusp, and other pipeline candidates, and for working capital and general purposes

** Nomlabofusp is co's potential treatment for Friedreich’s ataxia, a rare, degenerative disease that damages the nervous system, primarily affecting the spinal cord and nerves that control muscle movement in the arms and legs

** Leerink Partners, Guggenheim, Truist and William Blair are jt bookrunners for the offering

** LRMR has ~64 mln shares outstanding. Deerfield owns ~21.2 mln shares for ~33% stake, per LSEG data

** Shares of LRMR on Tues fell 3%, extending YTD loss to ~9%. Stock had gained 22% in Jul

** All 12 analysts are bullish on LRMR and median PT is $18 - LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))