aTyr Pharma initiated with an Overweight at Cantor Fitzgerald

Cantor Fitzgerald initiated coverage of aTyr Pharma (ATYR) with an Overweight rating. aTyr Pharma’s lead drug Efzofitimod is in two trials for interstitial lung diseases, a Phase 3 trial in pulmonary sarcoidosis, inflammatory lung disease, and a Phase 2 trial in Systemic sclerosis-associated interstitial lung disease, the analyst tells investors in a research note. Cantor is positive on Efzofitimod’s prospects in pulmonary sarcoidosis and estimates that it can show a 30% relative reduction in daily steroid use in Phase 3 that should lead to blockbuster commercial opportunity in PS. The firm thinks the stock is pricing in just a 10% probability of success for the Phase 3 in PS vs. the firm’s assumption of a 60% POS.