Larimar Therapeutics Reports Third Quarter 2021 Operating and Financial Results
Larimar Therapeutics, Inc. (Nasdaq: LRMR) reported its third quarter and year-to-date results as of September 30, 2021. The company has a strong balance sheet with $78 million in cash and marketable securities. Despite a clinical hold on its CTI-1601 program by the FDA due to safety concerns, they have compelling Phase 1 data and are focused on addressing Friedreich’s ataxia. The net loss for Q3 2021 was $16.8 million ($0.92 per share), increasing from $10.3 million in Q3 2020. R&D expenses rose to $14 million from $6.9 million in Q3 2020, driven by higher clinical supply costs.
- Strong balance sheet with $78 million in cash and marketable securities.
- Compelling Phase 1 data for CTI-1601 indicating proof-of-concept.
- Plans to submit data to FDA to address clinical hold and resume trials.
- Clinical hold placed by the FDA on CTI-1601 due to safety concerns.
- Net loss increased to $16.8 million in Q3 2021 compared to $10.3 million in Q3 2020.
- R&D expenses rose significantly to $14 million, reflecting increased costs.
BALA CYNWYD, Pa., Nov. 12, 2021 (GLOBE NEWSWIRE) -- Larimar Therapeutics, Inc. (“Larimar”) (Nasdaq: LRMR), a clinical-stage biotechnology company focused on developing treatments for complex rare diseases, today reported its third quarter and year to date September 30, 2021 operating and financial results.
“We are advancing towards 2022 with a strong balance sheet, the backing of high-quality institutional investors, and compelling Phase 1 data that demonstrate proof-of-concept for CTI-1601,” said Carole Ben-Maimon, MD, President and Chief Executive Officer of Larimar. “We continue to collect and analyze data from our 180-day non-human primate toxicology study so that we can continue moving towards the resolution of CTI-1601’s clinical hold and an expected return to the clinic in the first half of next year. We are working expeditiously towards this goal, as patients with Friedreich’s ataxia (FA) urgently need disease-modifying therapies. With a differentiated mechanism of action targeting the root cause of FA, we believe CTI-1601 is uniquely positioned to potentially address this need and look forward to its continued clinical development.”
Third Quarter 2021 Highlights
- Prior to the third quarter, the United States Food and Drug Administration (FDA) placed a clinical hold on the CTI-1601 clinical program after Larimar notified the agency of mortalities that occurred at the highest dose levels of a 180-day non-human primate (NHP) toxicology study designed to support extended dosing of patients with CTI-1601. In the clinical hold letter, the FDA stated that it needs a full study report from the NHP study and that Larimar may not initiate additional clinical trials until the Company has submitted the report and received notification from the agency that additional clinical trials may commence. At the time of the notice, the Company had no interventional clinical trials with patients enrolled or enrolling.
In July 2021, Larimar completed dosing in the 180-day NHP toxicology study, and it continues to collect and analyze data. While there is no way to predict the FDA’s response (which the Company anticipates will not be received prior to the first quarter of 2022) or whether they will require additional data or testing before lifting the clinical hold on CTI-1601 in full or in part, the Company expects to initiate its Jive open-label extension and pediatric multiple ascending dose trials in the first half of next year.
- Under an Equity Distribution Agreement with an investment bank, the Company may sell up to an aggregate of
$50 million of shares of common stock from time to time in connection with an “at the market” program. In July 2021, the Company sold 2,342,720 shares under the agreement for net proceeds of$19.9 million . As of September 30, 2021 and the date of this announcement,$29.2 million of common stock remains available for sale under this program. - In August 2021, Larimar initiated a non-interventional healthy volunteer study designed to generate data for comparison to patients with FA.
Third Quarter 2021 Financial Results
As of September 30, 2021, the Company had cash, cash equivalents and marketable debt securities totaling
The Company reported a net loss for the third quarter of 2021 of
Research and development expenses for the third quarter of 2021 were
General and administrative expenses for the third quarter of 2021 were
For the nine-months ended September 30, 2021, the Company reported a net loss of
Research and development expenses for the nine-months ended September 30, 2021 were
General and administrative expenses for the nine-months ended September 30, 2021 were
About Larimar Therapeutics
Larimar Therapeutics, Inc. (Nasdaq: LRMR) is a clinical-stage biotechnology company focused on developing treatments for complex rare diseases. Larimar’s lead compound, CTI-1601, is currently being evaluated in a Phase 1 clinical program in the U.S. as a potential treatment for Friedreich's ataxia. Larimar also plans to use its intracellular delivery platform to design other fusion proteins to target additional rare diseases characterized by deficiencies in intracellular bioactive compounds. For more information, please visit: https://larimartx.com.
Forward-Looking Statements
This press release contains forward-looking statements that are based on Larimar’s management’s beliefs and assumptions and on information currently available to management. All statements contained in this release other than statements of historical fact are forward-looking statements, including but not limited to statements regarding Larimar’s expectations regarding its ability to resolve the clinical hold imposed by the FDA related to CTI-1601, Larimar’s ability to develop and commercialize CTI-1601 and other planned product candidates, Larimar’s planned research and development efforts, including Larimar’s expectation that it will be able to initiate its Jive open-label extension and pediatric multiple ascending dose trials in the first half of 2022, and other matters regarding Larimar’s business strategies, use of capital, results of operations and financial position, and plans and objectives for future operations.
In some cases, you can identify forward-looking statements by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include, among others, Larimar’s ability to successfully engage with the FDA and satisfactorily respond to requests from the FDA for further information and data regarding CTI-1601, the timing and outcome of Larimar’s planned interactions with the FDA concerning the clinical hold on CTI-1601, the success, cost and timing of Larimar’s product development activities, nonclinical studies and clinical trials, including CTI-1601 clinical milestones; that clinical trial results may differ from final clinical trial results, that earlier non-clinical and clinical data and testing of CTI-1601 may not be predictive of the results or success of clinical trials, and assessments; the ongoing impact of the COVID-19 pandemic on Larimar’s future clinical trials, manufacturing, regulatory and nonclinical study timelines, ability to raise additional capital and general economic conditions; Larimar’s ability and the ability of third-party manufacturers Larimar engages, to optimize and scale CTI-1601’s manufacturing process; Larimar’s ability to obtain regulatory approval for CTI-1601 and future product candidates; Larimar’s ability to develop sales and marketing capabilities, whether alone or with potential future collaborators, and to successfully commercialize any approved product candidates; Larimar’s ability to raise the necessary capital to conduct its product development activities; and other risks described in the filings made by Larimar with the Securities and Exchange Commission (SEC), including but not limited to Larimar’s periodic reports, including the annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, filed with or furnished to the SEC and available at www.sec.gov. These forward-looking statements are based on a combination of facts and factors currently known by Larimar and its projections of the future, about which it cannot be certain. As a result, the forward-looking statements may not prove to be accurate. The forward-looking statements in this press release represent Larimar’s management’s views only as of the date hereof. Larimar undertakes no obligation to update any forward-looking statements for any reason, except as required by law.
| Investor Contact: | Company Contact: | ||
| Joyce Allaire | Michael Celano | ||
| LifeSci Advisors | Chief Financial Officer | ||
| jallaire@lifesciadvisors.com | mcelano@larimartx.com | ||
| (212) 915-2569 | (484) 414-2715 |
| Larimar Therapeutics, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (unaudited) | ||||||||
| September 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 71,525 | $ | 68,148 | ||||
| Marketable debt securities | 6,499 | 24,490 | ||||||
| Prepaid expenses and other current assets | 3,229 | 5,314 | ||||||
| Total current assets | 81,253 | 97,952 | ||||||
| Property and equipment, net | 1,135 | 1,040 | ||||||
| Operating lease right-of-use assets | 3,540 | 3,936 | ||||||
| Restricted cash | 1,339 | 1,339 | ||||||
| Other assets | 671 | 419 | ||||||
| Total assets | $ | 87,938 | $ | 104,686 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,766 | $ | 2,634 | ||||
| Accrued expenses | 7,966 | 5,843 | ||||||
| Operating lease liabilities, current | 574 | 515 | ||||||
| Total current liabilities | 10,306 | 8,992 | ||||||
| Operating lease liabilities | 5,565 | 6,002 | ||||||
| Total liabilities | 15,871 | 14,994 | ||||||
| Commitments and contingencies (See Note 9) | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock; authorized as of September 30, 2021 and December 31, 2020; no shares issued and outstanding as of September 30, 2021 and December 31, 2020 | — | — | ||||||
| Common stock, authorized as of September 30, 2021 and December 31, 2020; 17,710,450 and 15,367,730 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 18 | 15 | ||||||
| Additional paid-in capital | 179,165 | 155,290 | ||||||
| Accumulated deficit | (107,116 | ) | (65,614 | ) | ||||
| Accumulated other comprehensive loss | — | 1 | ||||||
| Total stockholders’ equity | 72,067 | 89,692 | ||||||
| Total liabilities and stockholders’ equity | $ | 87,938 | $ | 104,686 | ||||
| Larimar Therapeutics, Inc. | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| (In thousands, except share and per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | $ | 14,028 | $ | 6,919 | $ | 32,104 | $ | 20,833 | ||||||||
| General and administrative | 2,702 | 3,416 | 9,275 | 7,575 | ||||||||||||
| Total operating expenses | 16,730 | 10,335 | 41,379 | 28,408 | ||||||||||||
| Loss from operations | (16,730 | ) | (10,335 | ) | (41,379 | ) | (28,408 | ) | ||||||||
| Other income (expense), net | (75 | ) | 61 | (123 | ) | 130 | ||||||||||
| Net loss | $ | (16,805 | ) | $ | (10,274 | ) | $ | (41,502 | ) | $ | (28,278 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.92 | ) | $ | (0.64 | ) | $ | (2.48 | ) | $ | (2.69 | ) | ||||
| Weighted average common shares outstanding, basic and diluted | 18,287,924 | 15,984,609 | 16,768,458 | 10,505,826 | ||||||||||||
FAQ
What are Larimar Therapeutics' financial results for Q3 2021?
What is the status of Larimar's CTI-1601 program?
How much cash does Larimar Therapeutics have?
What drove the increase in R&D expenses for Larimar?
