Analyst Soumit Roy of JonesTrading maintained a Buy rating on aTyr Pharma (ATYR – Research Report), retaining the price target of $22.00.
Soumit Roy’s rating is based on several strategic adjustments and promising developments in aTyr Pharma’s clinical trials. The company has revised the primary endpoint of its Phase 3 trial for pulmonary sarcoidosis to measure steroid reduction as the absolute change from baseline to week 48. This change, following feedback from the FDA, is expected to enhance the trial’s chances of success by providing a more pronounced measure of clinical benefit.
Additionally, management has assured that the statistical power of the trial remains robust, with a reduced effect size needed to demonstrate clinical benefit. The company has also provided insights into the trial’s statistical analysis plan, indicating that the new endpoint is simpler to assess. These factors, combined with the company’s cash position and strategic planning, contribute to the Buy rating given by Soumit Roy.