Investing.com-- Shares of Larimar Therapeutics (NASDAQ:LRMR) tumbled 30% as investors reacted to a recent data update from the company's clinical program.
The biotechnology firm, which is working on a treatment for Friedreich’s ataxia (FA), disclosed that two patients experienced serious adverse events related to its experimental therapy, nomlabofusp.
The adverse incidents, which were serious enough to lead both patients to withdraw from the study, were resolved within 24 hours, according to a premarket statement from the company.
Despite the setbacks, Larimar Therapeutics emphasized that daily subcutaneous injections of nomlabofusp were "generally well tolerated for up to 260 days" by the 14 participants in the ongoing open label extension (OLE) study.
The stock experienced a volatile trading session on Monday, initially dropping as much as 51% in New York trading before closing with a 29% decline, after triggering multiple volatility halts.
The company remains committed to its plan of submitting an application for potential accelerated approval to U.S. regulators in the second half of 2025, aiming to address the rare neurodegenerative disease with its treatment.
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