Why Is aTyr Stock Falling Today?

Shares of aTyr Pharma, Inc. (ATYR) plummeted 82% in Monday’s pre-market after the company announced that its late-stage study of Efzofitimod in 268 patients with pulmonary sarcoidosis did not meet the primary goal of steroid dose reduction from baseline at week 48.

However, clinical benefit for Efzofitimod was observed across multiple study parameters, the company said. aTyr Pharma announced that it plans to engage with the U.S. Food and Drug Administration (FDA) to review the results and determine the path forward for Efzofitimod in the treatment of pulmonary sarcoidosis.

On Stocktwits, retail sentiment around ATYR stock jumped from 'bullish' to 'extremely bullish' territory over the past 24 hours, while message volume stayed at 'extremely high' levels. 

Pulmonary sarcoidosis is an inflammatory disease characterized by the formation of clumps of inflammatory cells in one or more organs of the body. It can cause permanent loss of lung function in some patients. According to the company, about 200,000 Americans live with the condition. A total of 268 patients with pulmonary sarcoidosis were enrolled in the late-stage study.

The company stated that the change from baseline in mean daily oral corticosteroid dose was reduced to an average of 2.79 mg for 5.0 mg/kg Efzofitimod, compared to 3.52 mg for the placebo in the trial. Complete steroid withdrawal was achieved for 52.6% of patients treated with 5.0 mg/kg efzofitimod vs 40.2% on placebo, it added.

The study, however, showed clinical improvement in the King’s Sarcoidosis Questionnaire (KSQ)-Lung score at week 48 for 5.0 mg/kg Efzofitimod compared to placebo. The questionnaire is designed to assess the impact of sarcoidosis on various aspects of life. Further, lung function was maintained at week 48, the company said. aTyr believes these findings indicate drug activity for Efzofitimod.

ATYR stock is down 70% this year and approximately 43% over the past 12 months. 

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