Wells Fargo downgrades aTyr Pharma on efzofitimod Phase 3 failure

As previously reported, Wells Fargo downgraded aTyr Pharma (ATYR) to Equal Weight from Overweight with a price target of $1, down from $25, 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. The firm believes efzofitimod’s efficacy on pre-specified secondary endpoints is interesting, but upside for shares will be dictated by FDA flexibility on what is a failed Phase 3 – this is hard to make a call on. Wells would await further clarity before getting constructive.