Larimar Therapeutics Stock Plummets Amidst Clinical Trial Concerns

Larimar Therapeutics (NASDAQ:LRMR) shares have lost 30% in value as investors reacted to the latest data update from the company's clinical program. The biotechnology firm, which is working on a treatment for Friedreich's ataxia (FA), reported that two patients experienced serious side effects related to the experimental treatment nomlabofusp. According to the company's pre-market announcement, the side effects were severe enough to cause both patients to withdraw from the study, but they resolved within 24 hours.

Despite the setbacks, Larimar Therapeutics emphasized that daily subcutaneous injections of nomlabofusp were "generally well tolerated for up to 260 days" by 14 participants in an ongoing open-label extension (OLE) study. The stock experienced a volatile trading session on Monday, initially dropping by as much as 51% in New York trading and closing down 29% after multiple volatility halts were triggered.

The company continues to maintain its plan to seek potential accelerated approval from U.S. regulators for its drug aimed at treating this rare neurodegenerative disease in the second half of 2025.