Leerink Partners analyst Faisal Khurshid has maintained their bullish stance on ATYR stock, giving a Buy rating on September 12.
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Faisal Khurshid’s rating is based on the potential for aTyr Pharma’s efzofitimod, despite the recent challenges faced in the Phase 3 EFZO-FIT trial. The trial did not meet its primary endpoint of steroid reduction in pulmonary sarcoidosis, which was a significant setback. However, there were modest improvements in steroid reduction and notable clinical improvements in the quality of life measure, KSQ-Lung QOL, which the company plans to discuss with the FDA for a potential path forward.
Despite the primary endpoint miss, the trial showed that patients could meaningfully reduce their steroid burden, and there was a higher than expected placebo response. The secondary endpoint of quality of life showed some promise, with the efzofitimod arm achieving a clinically important difference. While the expectations for regulatory approval based on these results are low, the potential for efzofitimod to improve patient outcomes in other ways supports the Buy rating.
Khurshid covers the Healthcare sector, focusing on stocks such as aTyr Pharma, ANI Pharmaceuticals, and Rhythm Pharmaceuticals. According to TipRanks, Khurshid has an average return of 37.0% and a 65.14% success rate on recommended stocks.