aTyr Pharma, Inc.(ATYR) - 2024 Q3 - Quarterly Report

Efzofitimod Clinical Development and Trials - The company's lead therapeutic candidate, efzofitimod, has shown positive results in a Phase 1b/2a clinical trial for pulmonary sarcoidosis, with consistent dose response and improvements in key efficacy endpoints compared to placebo[75][76] - The global pivotal Phase 3 EFZO-FIT study for efzofitimod in pulmonary sarcoidosis completed enrollment of 268 patients, exceeding the target of 264, with topline data expected in Q3 2025[77] - The company initiated an Individual Patient Expanded Access Program for efzofitimod, allowing patients who complete the Phase 3 EFZO-FIT study to receive treatment outside the clinical trial[78] - A Phase 2 proof-of-concept study (EFZO-CONNECT) for efzofitimod in SSc-ILD was amended to include a 24-week open-label extension, with interim data expected in Q2 2025[79] Collaboration and Licensing Agreements - The company has a collaboration with Kyorin Pharmaceutical for the development and commercialization of efzofitimod in Japan, generating $20 million in upfront and milestone payments, with potential for an additional$155 million and tiered royalties[80] - Kyorin Agreement milestone payment of $10.0 million triggered by the first patient dosing in Japan for the EFZO-FIT study, recorded as revenue in 2022 and received in February 2023[91] - Total upfront and milestone payments from Kyorin Agreement to date:$20.0 million, with potential for an additional $155.0 million upon achieving development, regulatory, and sales milestones[91] Pipeline and Therapeutic Candidates - The company has identified target receptors for domains of two additional tRNA synthetases, forming the basis of new pipeline candidates[83] - ATYR0101, a fusion protein derived from aspartyl-tRNA synthetase, shows potential for treating multiple fibrotic diseases by inducing apoptosis of myofibroblasts in a TGFβ-dependent manner[84] - ATYR0750, a fusion protein derived from alanyl-tRNA synthetase, is a novel ligand to FGFR4, with potential therapeutic benefits in diseases related to inflammation and fibrosis[85] Financial Performance and Cash Position - As of September 30, 2024, the company had$68.9 million in cash, cash equivalents, restricted cash, and available-for-sale investments, sufficient to meet material cash requirements for at least one year[87] - The company raised $48.1 million in a February 2023 public offering and$21.4 million through an at-the-market offering program in the first nine months of 2024[89][90] - Net cash used in operating activities for the nine months ended September 30, 2024: $56.0 million, primarily due to increased costs for EFZO-FIT and EFZO-CONNECT studies and BLA preparation[92] - Net cash provided by investing activities for the nine months ended September 30, 2024:$23.3 million, driven by timing differences in investment activities[93] - Net cash provided by financing activities for the nine months ended September 30, 2024: $21.0 million, primarily from the issuance of common stock[94] Expenses and Cost Analysis - Research and development expenses expected to increase, primarily driven by clinical development and manufacturing of efzofitimod[106] - Research and development expenses increased to$14.8 million in Q3 2024, up from $10.3 million in Q3 2023, primarily due to a$3.5 million increase in efzofitimod expenses[110] - Efzofitimod expenses rose to $11.9 million in Q3 2024, compared to$8.5 million in Q3 2023, driven by the advancement of the EFZO-FIT study and increased manufacturing efforts[110] - General and administrative expenses increased to $3.3 million in Q3 2024, up from$2.6 million in Q3 2023, mainly due to higher personnel-related costs[111] - Research and development expenses for the nine months ended September 30, 2024, were $42.1 million, up from$29.5 million in 2023, with a $12.5 million increase in efzofitimod expenses[114] - General and administrative expenses for the nine months ended September 30, 2024, were$10.2 million, compared to $9.8 million in 2023, due to higher personnel-related costs and professional fees[115] - Efzofitimod expenses for the nine months ended September 30, 2024, were$34.2 million, up from $21.7 million in 2023, driven by the EFZO-FIT study and manufacturing efforts[119] - Total research and development expenses for the nine months ended September 30, 2024, were$42.1 million, up from $29.5 million in 2023, with a$12.6 million increase[119] Revenue and Other Income - License and collaboration agreement revenues were $0.2 million for the nine months ended September 30, 2024, down from$0.4 million in the same period in 2023[113] - Other income, net decreased to $0.8 million in Q3 2024, down from$1.3 million in Q3 2023, primarily due to a lower cash balance[112] - Other income, net for the nine months ended September 30, 2024, was $3.0 million, slightly down from$3.3 million in 2023, due to a lower cash balance[116] Corporate Operations and Leasing - Corporate headquarters lease base rent: $5.75 per square foot per month for the first 12 months, with annual upward adjustments of approximately 3.0$1.6 million, with $2.2 million in cash collateral included in restricted cash[101] Accounting and Financial Policies - Critical accounting policies and estimates remain consistent with those disclosed in the 2023 Annual Report[109] - General and administrative expenses include salaries, stock-based compensation, and costs for legal, accounting, and patent maintenance[107]