Deaths of monkeys spur clinical hold for rare disease biotech's lead and only drug — and a $95M cash infusion goes out the window
In the world of small public biotechs, one mishap can be punishing.
Just ask Larimar Therapeutics, which disclosed late Tuesday that the FDA has placed a clinical hold on its Phase I drug for Friedreich’s ataxia following deaths of non-human primates in a toxicology study.
The surprise setback scuttled plans for a $95 million private financing that would’ve drawn in new cash from marquee investors like Deerfield, RA Capital, Cowen Healthcare Investments, Vivo Capital, Surveyor Capital (a Citadel company), Adage Capital Management and Verition Fund Management. Shares $LRMR plunged 45.23% to $7.40 in after-hours trading.
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