Tuesday saw a notable increase in the price of Larimar Therapeutics, Inc. (NASDAQ: LRMR) shares during extended trading. After closing at $8.74 in the regular session, the company’s stock gained a significant 11.62% during the post-market period, reaching $10.05 on the US stock charts. The increase in LRMR shares came after a calculated move in equity.
With the opportunity for eligible investors to acquire pre-funded warrants for the acquisition of common stock shares, Larimar (LRMR) announced the commencement of its underwritten public offering of its common stock. The business also intends to provide the underwriters a 30-day window during which they can buy up to 15% more of the securities that will be offered in the planned offering.
Larimar will supply all of the common stock and pre-funded warrants for the offering, subject to the state of the market and other considerations. The participation of respected entities like Leerink Partners, Citigroup, and Guggenheim Securities as joint bookrunning managers, along with LifeSci Capital as lead manager, emphasizes the importance of this offering.
The intended use of the net proceeds is aimed at enhancing the development of nomlabofusp (CTI-1601) and other pipeline candidates, as well as addressing working capital requirements and general corporate expenses, particularly research and development efforts.
Recently, Larimar unveiled encouraging top-line data and the successful conclusion of its four-week, placebo-controlled Phase 2 dose exploration study concerning nomlabofusp (CTI-1601) in individuals affected by Friedreich’s ataxia (FA). The observed dose-response patterns and elevation in FXN levels within peripheral tissues further validate the therapeutic promise of nomlabofusp in tackling FXN deficiency, the underlying pathology of FA.
Notably, patients administered with 50 mg of nomlabofusp showcased initial FXN skin levels below 17% of the average healthy volunteer level. However, after a 14-day course of daily treatment, all patients with quantifiable baseline levels displayed FXN skin levels surpassing 33% of the average healthy volunteer level, with three patients achieving levels exceeding 50%.
Larimar’s recent market activities coupled with its promising therapeutic advancements underscore its commitment to addressing critical medical needs and fortifying its position within the biopharmaceutical landscape.
