Market ‘misinterpreting’ Larimar data, selloff ‘overdone,’ says Citi

Citi analyst Samantha Semenkow notes Larimar Therapeutics (LRMR) announced initial data from the ongoing long-term Open Label Extension study evaluating daily subcutaneous injections of 25 mg of nomlabofusp and calls the market’s negative reaction to the disclosure “at odds with what we view as a very positive dataset.” The firm, which believes the market is “misinterpreting the two reported SAEs that led to discontinuations as a signal of a broader safety issue,” believes the longer-term safety data reported today begin to confirm that nomlabofusp is safe and tolerable for chronic dosing. The firm, which views today’s selloff as “overdone,” would be “buyers on the dip” and maintains a Buy rating and $14 price target on Larimar shares.