Larimar Therapeutics (LRMR) AI Stock Analysis

• Market Cap: $436.51M
• Dividend Yield: N/A
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.24
• Revenue Growth: N/A
• EPS Growth: -40.03%
• Country: US
• Employees: 65
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.41
• Shares Outstanding: 85,590,390
• 10 Day Avg. Volume: 2,205,325
• 30 Day Avg. Volume: 1,675,394
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.12
• Enterprise Value/Revenue: 106.08
• Enterprise Value/Gross Profit: -6.39K
• Enterprise Value/Ebitda: -0.47
• 1Y Price Target: $21.00
• Price Target Upside: 332.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 49 Neutral
• Price Target: ―

Larimar Therapeutics' stock score reflects its early-stage biotech status with high R&D costs, no consistent revenue, and reliance on equity financing. Despite positive short-term technical indicators suggesting upward momentum, the lack of profitability and a negative P/E ratio weigh heavily on the stock. Valuation concerns and the absence of earnings call insights further impact the score.

Positive Factors

Low Financial Leverage

Low financial leverage provides Larimar Therapeutics with flexibility to raise additional capital without significantly increasing financial risk, which is crucial for sustaining long-term R&D efforts.

Focus on Rare Diseases

Focusing on rare diseases positions Larimar in a niche market with less competition and potential for premium pricing, enhancing long-term revenue prospects if therapies are successfully developed and approved.

Equity Financing

Reliance on equity financing allows Larimar to fund its R&D without incurring debt, maintaining financial stability and enabling continued investment in its therapeutic pipeline.

Negative Factors

Negative Profitability

Negative profitability and cash flow indicate ongoing financial strain, requiring continuous external funding to sustain operations, which poses long-term sustainability risks if not addressed.

High R&D Expenses

High R&D expenses without consistent revenue generation can lead to prolonged periods of financial instability, challenging the company's ability to achieve profitability and sustain operations.

Lack of Revenue Growth

The absence of revenue growth reflects ongoing developmental stages and reliance on future product approvals, which may delay financial stability and investor confidence in the company's long-term prospects.

Larimar Therapeutics Business Overview & Revenue Model

Company Description

Larimar Therapeutics, Inc. (LRMR) is a clinical-stage biotechnology company focused on developing treatments for rare, complex diseases. The company is headquartered in the United States and operates within the pharmaceutical and biotechnology sectors. Its core product is CTI-1601, a novel protein replacement therapy designed to address Friedreich's ataxia, a debilitating genetic disorder. Larimar Therapeutics is committed to advancing its pipeline of therapeutics to improve the lives of patients with unmet medical needs.

How the Company Makes Money

Larimar Therapeutics primarily makes money through the development and potential commercialization of its proprietary therapies, with a focus on rare diseases such as Friedreich's ataxia. The company's revenue model includes securing funding through partnerships, grants, and possibly licensing agreements. As a biotechnology firm, Larimar Therapeutics is also involved in research and development activities, which may attract investment and collaborations with larger pharmaceutical companies. Additionally, the company may generate future revenue from the successful approval and commercialization of its therapies, leading to sales revenue or royalties.

Larimar Therapeutics Financial Statement Overview

Summary

Larimar Therapeutics is in a typical early-stage biotech phase with no consistent revenue, substantial R&D expenses, and reliance on equity financing. While the company maintains a low leverage position, the ongoing cash burn and negative profitability highlight the risks inherent in its business model.

Income Statement

Larimar Therapeutics shows a negative net profit margin and EBIT margin due to significant losses, despite a small amount of revenue in TTM. There is no consistent revenue generation, which is typical for early-stage biotech companies. The company has not demonstrated revenue growth, reflecting ongoing developmental stages with high R&D expenses.

Balance Sheet

The company's balance sheet is moderately stable with a low debt-to-equity ratio, indicating limited financial leverage. However, the return on equity is negative due to significant net losses, and the equity ratio is strong, reflecting significant equity financing.

Cash Flow

The cash flow statement reflects substantial negative operating cash flow, typical for biotech firms in R&D phases. There is also a negative free cash flow due to high cash burn, but financing activities have supported cash reserves. The cash flow ratios indicate cash outflows exceeding income, stressing the importance of external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	482.00K	0.00	0.00	0.00	0.00	0.00
Gross Profit	-8.00K	-318.00K	-311.00K	-272.00K	-326.00K	-155.00K
EBITDA	-108.28M	-80.29M	-41.45M	-35.08M	-50.14M	-42.65M
Net Income	-99.79M	-80.60M	-36.95M	-34.18M	-50.31M	-42.33M
Balance Sheet
Total Assets	149.99M	200.22M	95.94M	126.41M	78.67M	104.69M
Cash, Cash Equivalents and Short-Term Investments	138.52M	183.45M	86.79M	118.43M	70.10M	92.64M
Total Debt	4.61M	5.12M	5.55M	5.41M	6.00M	6.52M
Total Liabilities	30.13M	28.41M	14.21M	15.50M	14.25M	14.99M
Stockholders Equity	119.85M	171.81M	81.72M	110.90M	64.41M	89.69M
Cash Flow
Free Cash Flow	-92.59M	-71.28M	-33.62M	-27.67M	-42.44M	-42.26M
Operating Cash Flow	-92.28M	-70.76M	-33.46M	-27.57M	-42.10M	-42.20M
Investing Cash Flow	79.76M	-85.39M	33.35M	-90.96M	24.17M	17.09M
Financing Cash Flow	66.00K	161.88M	30.00K	75.26M	19.89M	93.59M

Larimar Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LRMR, the sentiment is Positive. The current price of 4.86 is above the 20-day moving average (MA) of 4.17, above the 50-day MA of 3.88, and above the 200-day MA of 3.22, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 69.95 is Neutral, neither overbought nor oversold. The STOCH value of 82.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LRMR.

Larimar Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TNXP	57 Neutral	216.52M	-0.02	-93.18%	―	-21.09%	90.95%
NKTR	56 Neutral	1.15B	-6.38	505.02%	―	-19.56%	35.55%
LRMR	49 Neutral	$436.51M	―	-60.25%	―	―	-40.03%
RAPT	39 Underperform	396.08M	-1.72	―	―	―	43.16%
ALDX	37 Underperform	300.08M	-5.84	―	―	―	-32.74%
KOD	35 Underperform	818.21M	-4.14	―	―	―	-0.69%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Larimar Therapeutics Corporate Events

Larimar Therapeutics Aligns Executive Incentives with Milestones

On January 22, 2025, Larimar Therapeutics’ Board of Directors granted performance-based restricted stock units (PSUs) to key executives, including the CEO, CFO, Chief Development Officer, and Chief Medical Officer. These awards are contingent on achieving certain regulatory milestones, with the vesting process split into two stages, signaling Larimar’s commitment to aligning executive incentives with strategic goals and regulatory success.