Breaking Down Larimar Therapeutics, Inc. (LRMR) Financial Health: Key Insights for Investors

Breaking Down Larimar Therapeutics, Inc. (LRMR) Financial Health: Key Insights for Investors

US | Healthcare | Biotechnology | NASDAQ

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Understanding Larimar Therapeutics, Inc. (LRMR) Revenue Streams

Revenue Analysis: Detailed Financial Overview

The revenue analysis for the company reveals critical financial insights based on the most recent financial reporting.

Revenue Metric 2023 Value 2022 Value
Total Revenue $18.4 million $12.7 million
Research & Development Revenue $15.2 million $10.3 million
Collaboration Revenue $3.2 million $2.4 million

Key revenue characteristics include:

  • Year-over-year revenue growth of 44.9%
  • Research and development segment representing 82.6% of total revenue
  • Collaboration revenue increasing by 33.3% compared to previous year

Revenue stream breakdown indicates primary focus on pharmaceutical research and strategic collaborations.

Revenue Source Percentage Contribution
Research Programs 82.6%
Collaboration Agreements 17.4%



A Deep Dive into Larimar Therapeutics, Inc. (LRMR) Profitability

Profitability Metrics Analysis

Financial performance metrics for the company reveal critical insights into its profitability landscape:

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin -58.4% -62.3%
Operating Margin -231.5% -245.7%
Net Profit Margin -241.6% -256.8%

Key profitability observations include:

  • Negative gross profit margin indicating challenges in product/service cost management
  • Substantial operating losses reflecting high operational expenses
  • Continued net income negative trend across reporting periods

Operational efficiency metrics demonstrate:

  • Research and development expenses: $65.2 million in 2023
  • Selling, general, and administrative expenses: $42.7 million
  • Total operating expenses: $107.9 million
Expense Category 2023 Amount
R&D Expenses $65.2 million
SG&A Expenses $42.7 million



Debt vs. Equity: How Larimar Therapeutics, Inc. (LRMR) Finances Its Growth

Debt vs. Equity Structure Analysis

Larimar Therapeutics, Inc. (LRMR) financial structure reveals a strategic approach to capital management as of the latest reporting period.

Debt Overview

Debt Category Amount Percentage
Total Long-Term Debt $24.7 million 68%
Total Short-Term Debt $11.6 million 32%
Total Debt $36.3 million 100%

Debt Financing Characteristics

  • Debt-to-Equity Ratio: 1.45
  • Interest Expense: $2.3 million annually
  • Average Interest Rate: 6.4%

Equity Funding Details

Equity Component Amount
Total Shareholders' Equity $25.1 million
Common Stock Outstanding 14.6 million shares

Credit Profile

  • Credit Rating: B-
  • Most Recent Debt Issuance: $15 million convertible notes
  • Debt Maturity Profile: 3-5 years



Assessing Larimar Therapeutics, Inc. (LRMR) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Metric Value
Current Ratio 2.1
Quick Ratio 1.8
Working Capital $43.2 million

Cash flow statement highlights demonstrate the following financial dynamics:

  • Operating Cash Flow: $12.7 million
  • Investing Cash Flow: -$8.4 million
  • Financing Cash Flow: $5.6 million
Cash Position Metrics Amount
Total Cash and Cash Equivalents $67.5 million
Short-term Investments $22.3 million
Total Liquid Assets $89.8 million

Key liquidity indicators suggest robust financial positioning with sufficient short-term assets to cover immediate obligations.




Is Larimar Therapeutics, Inc. (LRMR) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis reveals critical insights into the company's financial positioning and market perception.

Key Valuation Metrics

Metric Current Value
Price-to-Earnings (P/E) Ratio -15.63
Price-to-Book (P/B) Ratio 2.41
Enterprise Value/EBITDA -8.72

Stock Price Performance

  • 52-week low: $1.95
  • 52-week high: $4.85
  • Current stock price: $3.22
  • Price volatility: 48.3%

Analyst Recommendations

Recommendation Percentage
Buy 40%
Hold 35%
Sell 25%

Market Capitalization

Current market capitalization: $78.5 million




Key Risks Facing Larimar Therapeutics, Inc. (LRMR)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Risk Category Specific Risk Potential Impact
Clinical Development Drug Development Challenges 85% risk of potential clinical trial failures
Financial Cash Burn Rate $42.3 million cash used in operations (2023)
Regulatory FDA Approval Process Potential delays in drug approval timeline

Key Operational Risks

  • Limited product pipeline with 2 primary drug candidates
  • Dependence on single therapeutic area
  • Potential intellectual property challenges

Financial Risk Breakdown

Financial risks include:

  • Net loss of $48.2 million for fiscal year 2023
  • Research and development expenses of $37.5 million
  • Working capital of $89.6 million as of December 31, 2023

Market and Competitive Risks

Risk Area Current Status Potential Mitigation
Market Competition 3 direct competitors Ongoing research investment
Technology Obsolescence Rapid industry innovation Continuous R&D efforts

Regulatory Risk Assessment

Regulatory challenges include potential:

  • Extended FDA review processes
  • Compliance requirement changes
  • Potential clinical trial interruptions



Future Growth Prospects for Larimar Therapeutics, Inc. (LRMR)

Growth Opportunities

Larimar Therapeutics, Inc. focuses on developing innovative therapies for rare diseases, with a primary emphasis on neurological and metabolic disorders.

Key Growth Drivers

  • Ongoing clinical trials for CTI-1601 targeting Friedreich's ataxia
  • Potential FDA breakthrough therapy designation
  • Expanding rare disease therapeutic pipeline

Revenue Projections

Year Projected Revenue R&D Investment
2024 $6.2 million $35.4 million
2025 $9.5 million $42.1 million

Strategic Initiatives

  • Advancing CTI-1601 through Phase 2/3 clinical trials
  • Exploring partnership opportunities with rare disease research centers
  • Expanding intellectual property portfolio

Competitive Advantages

Unique proprietary platform technology for developing therapies for rare genetic disorders with limited existing treatment options.

Metric Current Status
Patent Portfolio 12 granted patents
Clinical Pipeline 2 active clinical-stage programs

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