Larimar Therapeutics Stock Tumbles 30%

Shares of Larimar Therapeutics (NASDAQ: LRMR) fell 30% following a recent data update from the company's clinical program.

The biotechnology firm is developing a treatment for Friedreich’s ataxia (FA) and disclosed that two patients faced serious adverse events related to its experimental therapy, nomlabofusp. These incidents led both patients to withdraw from the study, although they were resolved within 24 hours, as stated in a premarket announcement.

Despite these setbacks, Larimar Therapeutics noted that daily subcutaneous injections of nomlabofusp were “generally well tolerated for up to 260 days” by the 14 participants in the ongoing open label extension (OLE) study.

The stock showed volatility during trading on Monday, initially plunging 51% in New York before closing down 29%, causing several volatility halts.

The company remains committed to submitting an application for potential accelerated approval to U.S. regulators in the second half of 2025, aiming to address this rare neurodegenerative disease with its treatment.

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