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aTyr Pharma downgraded to Neutral from Buy at Lucid Capital

Lucid Capital downgraded aTyr Pharma (ATYR) to Neutral from Buy with a price target of $1, down from $11, after the Phase 3 EFZO-FIT trial failed to show a significant reduction in change from baseline in mean daily oral corticosteroid dose at week 48 with efzofitimod in patients with pulmonary sarcoidosis. While the data suggests clinical benefit on quality-of-life endpoints, the failure to achieve statistical significance on the primary endpoint “complicates the regulatory path” and the firm prefers to stay on the sidelines pending FDA discussions as it believes shares may remain range-bound until there is more clarity.

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