H.C. Wainwright reaffirms aTyr Pharma stock with a $35 price target

On Thursday, H.C. Wainwright analysts maintained a Buy rating on aTyr Pharma stock (NASDAQ:ATYR) and reaffirmed a $35 price target, representing significant upside potential from the current price of $5.14. The stock has shown remarkable momentum, gaining over 180% in the past year. According to InvestingPro data, the company maintains strong analyst support, with a consensus "Strong Buy" recommendation. This decision follows recent findings from the interim analysis of the ongoing Phase 2 EFZO-CONNECT study, which evaluates the company’s lead therapeutic candidate, efzofitimod, in patients suffering from systemic sclerosis-related interstitial lung disease (SSc-ILD).

The EFZO-CONNECT study is a 28-week randomized, double-blind, placebo-controlled trial. It aims to assess the efficacy, safety, and tolerability of efzofitimod in patients with limited or diffuse SSc-ILD. Participants are divided into three cohorts, receiving either 270 mg or 450 mg of efzofitimod or a placebo, administered intravenously monthly over six doses. The trial plans to enroll 25 patients across multiple U.S. centers, all of whom are receiving standard mycophenolate therapy. InvestingPro analysis shows the company maintains a healthy financial position with a strong current ratio of 7.79 and more cash than debt on its balance sheet, providing adequate runway for its clinical programs.

The primary goal of the study is to evaluate the impact of multiple doses of efzofitimod on pulmonary, cutaneous, and systemic manifestations in SSc-ILD patients. Secondary objectives focus on assessing the safety and tolerability of the treatment. The interim analysis released Thursday examined skin assessments and serum biomarkers at baseline and at week 12 for both efzofitimod and placebo groups.

Eight patients participated in the interim analysis, including five with diffuse and three with limited SSc-ILD. The study employs the Modified Rodnan Skin Score (mRSS) to evaluate skin thickening severity, a significant feature of the disease. H.C. Wainwright believes the study’s findings could elevate aTyr Pharma’s profile among key investment funds. With a market capitalization of $457 million and significant recent momentum, investors seeking deeper insights can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, which provide extensive coverage of over 1,400 US stocks.

In other recent news, aTyr Pharma has reported positive interim results from a Phase 2 study of efzofitimod for treating systemic sclerosis-related interstitial lung disease (SSc-ILD). The study indicated that three out of four patients with diffuse SSc-ILD experienced significant improvements, with all patients showing stable or improved skin fibrosis scores. The company also highlighted progress on another drug candidate, ATYR0101, which has shown promise in preclinical models for its anti-fibrotic properties. Additionally, Cantor Fitzgerald has maintained its Overweight rating on aTyr Pharma, focusing on the upcoming Phase 3 trial of efzofitimod for pulmonary sarcoidosis, expected to deliver results in the third quarter of 2025. The firm noted that recent updates to the trial’s primary endpoint analysis could enhance its chances of success. Meanwhile, aTyr Pharma has appointed Dalia R. Rayes as the new Head of Commercial for its global efzofitimod franchise, emphasizing her role in the drug’s commercial strategy and operations. Rayes’ appointment is seen as pivotal, with her experience in launching rare disease products expected to contribute significantly to the program’s success.

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