Larimar Therapeutics falls after $60 mln equity raise

Shares of Larimar Therapeutics LRMR.O down 9.6% premarket to $3.19 after follow-on offering

Bala Cynwyd, Pennsylvania-based biotech late Tues announced pricing 18.75 mln shares at $3.20 for total gross proceeds of $60 mln

Offering price represents 9.3% discount to stock's last close

Deerfield Management. LRMR's largest shareholder, indicated interest in purchasing offering shares, per the prospectus

LRMR intends to use net offering proceeds to support development of its lead compound, nomlabofusp, and other pipeline candidates, and for working capital and general purposes

Nomlabofusp is co's potential treatment for Friedreich’s ataxia, a rare, degenerative disease that damages the nervous system, primarily affecting the spinal cord and nerves that control muscle movement in the arms and legs

Leerink Partners, Guggenheim, Truist and William Blair are jt bookrunners for the offering

LRMR has ~64 mln shares outstanding. Deerfield owns ~21.2 mln shares for ~33% stake, per LSEG data

Shares of LRMR on Tues fell 3%, extending YTD loss to ~9%. Stock had gained 22% in Jul

All 12 analysts are bullish on LRMR and median PT is $18 - LSEG