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Investing.com - Jefferies raised its price target on aTyr Pharma (NASDAQ:ATYR) to $17.00 from $9.00 on Friday, maintaining a Buy rating ahead of upcoming Phase 3 trial results for the company’s lead drug candidate. Currently trading at $4.95, the stock has delivered an impressive 164% return over the past year, according to InvestingPro data.
The price target increase comes as aTyr prepares to release topline data from its Phase 3 trial of efzofitimod for sarcoidosis in mid-September 2025. Efzofitimod represents a novel mechanism of action as a tRNA synthetase and NRP2 targeting therapy. InvestingPro analysis shows the company maintains a strong financial position with more cash than debt and a healthy current ratio of 5.63.
Jefferies outlined three potential scenarios for the upcoming data readout, assigning a 37% probability to a bullish outcome with statistically significant results showing a 3mg+ decrease in daily oral corticosteroid dose, which could drive a 3-5x stock move.
The firm noted a 23% probability for base case results showing a 1.87-3mg decrease, potentially driving a 1-3x stock move, while assigning a 40% probability to negative results that could cause up to a 75% stock decline.
Jefferies highlighted the significant unmet need in pulmonary sarcoidosis, which currently has no approved therapies, and pointed to promising Phase 1/2 proof-of-concept data that provides positive readthrough to the Phase 3 trial.
In other recent news, aTyr Pharma has completed its pivotal Phase 3 EFZO-FIT study for its lead therapeutic candidate, efzofitimod, aimed at treating pulmonary sarcoidosis. The company announced that the last patient has completed their final visit in the trial. Analysts from H.C. Wainwright reiterated a Buy rating with a $35.00 price target, reflecting confidence in the trial’s potential outcomes. Similarly, Cantor Fitzgerald maintained its Overweight rating, with expectations for topline results to be revealed in early-to-mid September, followed by a detailed presentation at the European Respiratory Society conference. Leerink Partners also expressed optimism, maintaining an Outperform rating and a $16.00 price target, citing the upcoming Phase 3 readout as a key event. Additionally, aTyr Pharma is set to join the Russell 2000 and Russell 3000 indexes, effective after market close on June 27, 2025. This inclusion highlights the company’s stature among the largest publicly traded U.S. companies. These developments are part of a series of recent updates regarding aTyr Pharma’s progress and market positioning.
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