aTyr Pharma (ATYR) Posts Wider-Than-Expected Loss as Investor Litigation Over Key Drug's Efficacy Moves Forward -- Hagens Berman

Core Viewpoint - aTyr Pharma, Inc. is facing intensified financial and legal pressures following disappointing third-quarter results and ongoing securities class action litigation [1][4]. Financial Performance - aTyr reported a GAAP EPS loss of -$0.26 for Q3, missing analyst estimates by $0.08 [2]. - Revenues for the quarter were $190,000, indicating a reliance on the clinical pipeline rather than commercial sales [2]. Clinical Developments - Management plans to meet with the U.S. FDA in Q1 2026 to discuss the Phase 3 EFZO-FIT study results and the future of efzofitimod in treating pulmonary sarcoidosis [3]. - The EFZO-FIT study did not meet its primary endpoint, leading to a significant drop in stock price [5]. Legal Issues - aTyr is involved in securities class action litigation alleging that the company misled investors about efzofitimod's efficacy [4][6]. - The class period for the lawsuit has been expanded to include investors who acquired shares from November 7, 2024, to September 12, 2025 [6]. - The litigation claims that aTyr's positive statements about the drug concealed deficiencies in its performance and trial design [7]. Market Reaction - Following the announcement that the EFZO-FIT study did not meet its primary endpoint, aTyr's stock fell over 83% in one day, from $6.03 to $1.02 [5].