The company priced 20 million shares at $5 each, upsized from a previously announced $75 million raise.
- The company priced an upsized $100 million stock offering, following a record 61% surge in Wednesday’s regular session.
- On Tuesday, the FDA granted Breakthrough Therapy Designation to Nomlabofusp, Larimar’s frataxin protein replacement therapy for Friedreich’s ataxia.
- The company remains on track to submit a BLA in June and expects topline data in Q2.
Shares of Larimar Therapeutics Inc. (LRMR) surged over 60% on Wednesday to their strongest session on record before pricing an upsized $100 million stock offering, extending gains following the FDA’s Breakthrough Therapy designation for Nomlabofusp.
Larimar Prices Upsized $100M Stock Offering
Late Wednesday, the biotech firm said it priced 20 million shares of common stock at $5 per share, raising gross proceeds of nearly $100 million before underwriting discounts and expenses.
The deal was upsized from the earlier-announced $75 million offering. Larimar also granted underwriters a 30-day option to purchase up to an additional 3 million shares at the public offering price, less underwriting discounts and commissions. The offering is expected to close on Thursday.
Larimar intends to use the net proceeds to support the development of Nomlabofusp, its Breakthrough Therapy-designated frataxin protein replacement treatment for a neurodegenerative disorder, as well as working capital and general corporate purposes, including research and development and commercialization expenses.
FDA Grants Breakthrough Status To Nomlabofusp
The equity raise comes just one day after Larimar said that the FDA granted Breakthrough Therapy Designation to Nomlabofusp, its frataxin protein replacement therapy for adults and children with Friedreich’s ataxia, a rare inherited neurodegenerative disorder.
The designation is intended to expedite development and regulatory review for therapies that may offer substantial improvement over available treatments.
The FDA’s decision was based on preliminary data from Larimar’s ongoing open-label study. The company said treatment raised frataxin levels in patients’ skin to amounts typically seen in people who carry the gene mutation but do not develop symptoms. After one year, patients also showed consistent improvement across four key measures of the disease, including overall neurological function, daily living activities, hand coordination and fatigue.
The agency also reaffirmed its willingness to consider skin frataxin levels as a novel surrogate endpoint reasonably likely to predict clinical benefit, supporting Larimar’s planned Biologics License Application (BLA) seeking accelerated approval.
BLA Timeline And Phase 3 Plans Remain On Track
Larimar said it remains on track to submit a BLA in June. Topline data from the open-label study to support the filing are expected in the second quarter of this year.
The company also plans to initiate screening in a global confirmatory Phase 3 study in the second quarter of 2026, with first patient dosing expected by mid-2026. If approved, a U.S. launch is targeted for the first half of 2027.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment for LRMR was ‘extremely bullish’ amid ‘extremely high’ message volume.
One user said, “back at $6 hope to open at $7-$8 tomorrow.”
Another user said, “They’ll get this drug pushed through and the share price will be 15-20 very soon.”
LRMR stock has jumped 56% year to date.
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