Why Is Larimar Therapeutics Stock Plunging Despite Positive CTI-1601 Data?

Larimar Therapeutics Inc LRMR shares are trading lower despite announcing positive topline data from its Phase 1 multiple ascending dose trial evaluating CTI-1601 as a treatment for Friedreich's Ataxia (FA).
The data showed that repeated subcutaneous injections of CTI-1601 led to dose-dependent increases in FXN levels from baseline versus the placebo controls.
The repeated subcutaneous injections of CTI-1601 were generally well tolerated at doses up to 100mg administered daily for 13 days.
According to the company's 10-Q filing for Q1, the results from the non-human primate studies for the CTI-1601 program implied some safety concerns.
The company has reported mortality in a 90-day non-human primate study which is believed to be due to bacterial meningitis infection and had no connection with the drug.
In addition, mortalities have been observed in the ongoing 180 day-non-human primate study at the highest dose levels.
The company says that it has informed the FDA of these findings and continues to dose non-human primates in the study and continue to collect and evaluate data.
It says that additional non-clinical information may be required before initiating further clinical studies, based on all the information it has from the non-clinical program to date.
Price Action: LRMR shares dropped 33.3% at $8.75 during the market trading session on the last check Tuesday.