aTyr Pharma Shares Plunge 81% After Failed Drug Trial, Investor Claims Under Investigation
Written by Emily J. Thompson, Senior Investment Analyst
Source: PRnewswire
Updated: 2 day ago0mins
- Stock Plunge: On September 15, 2025, aTyr Pharma announced that its experimental drug failed to meet the primary endpoint in a late-stage study, resulting in a staggering 81% drop in share price during morning trading, severely undermining investor confidence.
- Legal Investigation Initiated: DJS Law Group is investigating whether aTyr Pharma issued misleading statements or failed to disclose critical information to investors, which could expose the company to significant legal liabilities and highlight potential deficiencies in corporate transparency.
- Investor Losses: The failure of the drug trial may have caused substantial financial losses for many shareholders, prompting DJS Law Group to invite affected investors to participate in litigation aimed at protecting their rights and recovering losses.
- Market Confidence Eroded: This incident not only impacts aTyr Pharma's stock price but may also have long-term negative implications for its future financing and market reputation, reflecting the high sensitivity of the biopharmaceutical industry to clinical trial outcomes.
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Analyst Views on ATYR
Wall Street analysts forecast ATYR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ATYR is 8.00 USD with a low forecast of 1.00 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
2 Buy
7 Hold
0 Sell
Hold
Current: 0.808
Low
1.00
Averages
8.00
High
20.00
Current: 0.808
Low
1.00
Averages
8.00
High
20.00
Leerink
Faisal Khurshid
Outperform
maintain
$NULL
2025-09-15
Reason
Leerink
Faisal Khurshid
Price Target
$NULL
2025-09-15
maintain
Outperform
Reason
Leerink analyst Faisal Khurshid keeps an Outperform rating on aTyr Pharma after the company said the Phase 3 EFZO-FIT trial of efzofitimod in pulmonary sarcoidosis failed to meet its primary endpoint of steroid reduction. While aTyr plans to engage with the FDA on a potential path forward, Leerink's expectations are low given the primary endpoint miss and unclear relevance of KSQ-Lung score improvements alone, the analyst tells investors in a research note. Going into the readout, the firm expected a primary endpoint miss would see 80%-90% share downside. aTyr Pharma shares are down 82%, or $4.97, to $1.07 in early trading.
Cantor Fitzgerald
Overweight -> Neutral
downgrade
2025-09-15
Reason
Cantor Fitzgerald
Price Target
2025-09-15
downgrade
Overweight -> Neutral
Reason
Cantor Fitzgerald downgraded aTyr Pharma to Neutral from Overweight after the company announced that the Phase 3 pulmonary sarcoidosis trial for efzofitimod missed the primary endpoint of change in mean steroid dose from baseline at week 48. aTyr plans to engage with the FDA to determine the path forward, but the firm doesn't have much confidence in the path forward for efzo in pulmonary sarcoidosis, the analyst tells investors.
Leerink
Faisal Khurshid
Outperform
to
Market Perform
downgrade
$16 -> $1
2025-09-15
Reason
Leerink
Faisal Khurshid
Price Target
$16 -> $1
2025-09-15
downgrade
Outperform
to
Market Perform
Reason
Leerink analyst Faisal Khurshid downgraded aTyr Pharma to Market Perform from Outperform with a price target of $1, down from $16, after the company reported that the Phase 3 EFZO-FIT trial of efzofitimod in pulmonary sarcoidosis failed to meet its primary endpoint. The firm had been positive heading into the "highly binary" readout, but tells investors "we were wrong" after topline results showed no statistically significant difference in steroid reduction. The firm isn't sure there is a path forward for efzo given the miss on the primary endpoint and unclear clinical relevance of quality-of-life improvement, the analyst added.
H.C. Wainwright
H.C. Wainwright
Buy -> Neutral
downgrade
2025-09-15
Reason
H.C. Wainwright
H.C. Wainwright
Price Target
2025-09-15
downgrade
Buy -> Neutral
Reason
H.C. Wainwright downgraded aTyr Pharma to Neutral from Buy without a price target after the company's Phase 3 EFZO-FIT study evaluating lead asset efzofitimod for the treatment of pulmonary sarcoidosis missed the primary endpoint. "Many open questions remain regarding a path forward," the analyst tells investors in a research note. The firm cites the lack of regulatory visibility for the downgrade.
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About ATYR
aTyr Pharma, Inc. is a clinical-stage biotechnology company. The Company is leveraging evolutionary intelligence to translate tRNA synthetase biology into new therapies for fibrosis and inflammation. Its lead therapeutic candidate is efzofitimod, a first-in-class biologic immunomodulator in clinical development for the treatment of interstitial lung disease (ILD), a group of immune-mediated disorders that can cause inflammation and fibrosis, or scarring, of the lungs. Efzofitimod is a tRNA synthetase-derived therapy that selectively modulates activated myeloid cells through neuropilin-2 (NRP2) to resolve aberrant inflammation without immune suppression and potentially prevent the progression of fibrosis. ATYR0101 is a fusion protein derived from a domain of aspartyl-tRNA synthetase (DARS). ATYR0750 is a fusion protein derived from the domain of alanyl-tRNA synthetase (AARS). ATYR0750 is a novel ligand to fibroblast growth factor receptor 4 (FGFR4).
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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