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aTyr Pharma (ATYR)
NASDAQ:ATYR

aTyr Pharma (ATYR) AI Stock Analysis

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aTyr Pharma

(NASDAQ:ATYR)

48Neutral
aTyr Pharma's overall stock score reflects significant financial challenges, including ongoing losses and negative cash flows. Despite positive clinical developments and a strong cash position, the bearish technical indicators and negative valuation metrics weigh down the score. The earnings call offered promising guidance, but market challenges and limited clinical benchmarks pose risks.
Positive Factors
Publication and Scientific Support
ATYR announced publication of data supporting efzofitimod's immunomodulatory activity in Science Translational Medicine, which is a pre-eminent peer-reviewed scientific journal.
Safety Profile
The fourth independent DSMB analysis recommended the continuation of the Phase 3 EFZO-FIT trial without modifications, showing a lack of safety concerns.
Trial Design
The more aggressive steroid tapering protocol and recent shift to measure steroid reduction as baseline vs. week 44-48 strongly increase EFZO-FIT's chance of showing a treatment effect.
Negative Factors
Investor Concerns
Some investors may worry that the required 3mg difference in steroid reduction vs. placebo represents a relatively larger percentage against a 10.55mg baseline in Ph 3 than the 13.2mg baseline from Ph 1/2.
Potential Conflict of Interest
There is a potential conflict of interest as Wells Fargo Securities seeks business relationships with companies covered in its research reports.

aTyr Pharma (ATYR) vs. S&P 500 (SPY)

aTyr Pharma Business Overview & Revenue Model

Company DescriptionaTyr Pharma, Inc. is a biotechnology company engaged in the discovery and development of innovative medicines based on novel biological pathways. The company focuses on therapeutic applications of aminoacyl tRNA synthetase biology and extracellular vesicles to develop treatments for various indications, including rare diseases and conditions characterized by immune dysregulation.
How the Company Makes MoneyaTyr Pharma makes money primarily through the development and commercialization of its proprietary therapeutic candidates. The company generates revenue through collaborations, licensing agreements, and potential sales of its developed therapies upon regulatory approval. Key revenue streams include milestone payments and royalties from partnerships with other pharmaceutical companies. Significant factors contributing to its earnings include the successful advancement of its product pipeline and strategic collaborations with industry partners to leverage expertise and resources in drug development and commercialization.

aTyr Pharma Financial Statement Overview

Summary
aTyr Pharma's financial performance faces significant challenges, with declining revenue, ongoing losses, and negative cash flows. Despite a strong equity position and low debt levels, the lack of profitability and cash flow generation presents long-term viability risks.
Income Statement
35
Negative
aTyr Pharma's income statement shows significant challenges with sustained negative profitability. The gross profit margin was 100% in 2024 due to minimal revenue, but the company has a consistent negative net profit margin due to high expenses outweighing revenue, with a net income of -$64 million in 2024. Revenue growth was negative at -33.43% from 2023 to 2024, indicating a decline in sales. The EBIT and EBITDA margins are both negative, reflecting ongoing operational losses.
Balance Sheet
50
Neutral
The balance sheet shows a moderate financial position for aTyr Pharma. The debt-to-equity ratio is relatively low at 0.19, suggesting manageable leverage. However, the return on equity (ROE) is negative due to substantial net losses impacting shareholder value. The equity ratio stands at 72.33%, indicating a strong equity position relative to total assets.
Cash Flow
40
Negative
Cash flow analysis for aTyr Pharma reveals ongoing operational cash deficits, with an operating cash flow of -$69 million in 2024. The free cash flow growth rate is negative at -84.64%. The operating cash flow to net income ratio is slightly above 1, indicating operating losses are closely aligned with net income losses.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
235.00K353.00K10.39M0.0010.46M
Gross Profit
235.00K-2.39M8.69M-1.30M-6.84M
EBIT
-67.91M-54.92M-46.40M-34.02M-15.91M
EBITDA
-66.37M-52.18M-44.71M-32.47M-14.64M
Net Income Common Stockholders
-64.02M-50.39M-45.34M-33.77M-16.22M
Balance SheetCash, Cash Equivalents and Short-Term Investments
72.13M98.17M66.15M107.91M31.69M
Total Assets
96.83M120.65M95.79M115.54M38.73M
Total Debt
13.28M15.10M11.53M1.38M2.24M
Net Debt
2.23M-7.45M1.55M-958.00K-14.71M
Total Liabilities
27.00M30.18M24.50M6.41M7.24M
Stockholders Equity
70.02M90.66M71.46M109.30M31.65M
Cash FlowFree Cash Flow
-69.18M-37.44M-43.53M-33.27M-15.50M
Operating Cash Flow
-69.12M-33.22M-41.89M-33.08M-15.30M
Investing Cash Flow
17.23M-20.13M47.24M-91.57M6.90M
Financing Cash Flow
39.86M66.23M5.45M110.03M16.14M

aTyr Pharma Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.79
Price Trends
50DMA
3.60
Negative
100DMA
3.49
Negative
200DMA
2.76
Positive
Market Momentum
MACD
-0.15
Positive
RSI
34.47
Neutral
STOCH
3.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATYR, the sentiment is Negative. The current price of 2.79 is below the 20-day moving average (MA) of 3.44, below the 50-day MA of 3.60, and above the 200-day MA of 2.76, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 34.47 is Neutral, neither overbought nor oversold. The STOCH value of 3.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATYR.

aTyr Pharma Risk Analysis

aTyr Pharma disclosed 68 risk factors in its most recent earnings report. aTyr Pharma reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

aTyr Pharma Peers Comparison

Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$1.58B-9.85%56.60%-403.56%
56
Neutral
$1.92B-113.76%229.74%70.23%
52
Neutral
$5.49B-31.26%104.04%87.80%
48
Neutral
$6.86B1.11-50.22%2.47%16.71%1.53%
48
Neutral
$255.91M-79.69%-33.43%8.94%
44
Neutral
$119.89M-3758.21%-100.00%-7.66%
42
Neutral
$77.93M-54.21%-78.55%-0.92%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ATYR
aTyr Pharma
2.79
0.92
49.20%
FATE
Fate Therapeutics
0.68
-6.29
-90.24%
BPMC
Blueprint Medicines
87.11
-3.57
-3.94%
MCRB
Seres Therapeutics
0.69
-0.07
-9.21%
KNSA
Kiniksa Pharmaceuticals
21.76
3.70
20.49%
ARQT
Arcutis Biotherapeutics
16.16
5.41
50.33%

aTyr Pharma Earnings Call Summary

Earnings Call Date: Mar 13, 2025 | % Change Since: -30.08% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant progress in clinical trials and market opportunities, along with a solid financial position. However, there are challenges related to limited clinical studies for benchmarking and high unmet medical needs in the current market landscape.
Highlights
Completion of Enrollment in EFZO-FIT Phase 3 Study
aTyr completed enrollment in the global pivotal Phase 3 EFZO-FIT study of efzofitimod in patients with pulmonary sarcoidosis, enrolling 268 patients across 85 centers in 9 countries.
Positive Safety Profile in Phase 3 Study
Four positive data and safety monitoring board reviews for EFZO-FIT identified no safety concerns, recommending the study to continue unmodified.
Increased Market Opportunity for Efzofitimod
Recent analysis shows the U.S. patient population for sarcoidosis is 30% higher than previously estimated, suggesting a larger market opportunity for efzofitimod.
Publication in Science Translational Medicine
An extensive manuscript on efzofitimod's mechanism of action and preclinical data was published in the journal Science Translational Medicine, validating its immunomodulatory properties.
Strong Financial Position and Cash Runway
aTyr ended 2024 with $75.1 million in cash and raised an additional $18.8 million, with a cash runway expected to fund operations through one year following the Phase 3 EFZO-FIT readout.
Lowlights
Limited Clinical Studies in Sarcoidosis
There are limited clinical studies in sarcoidosis to benchmark against, presenting challenges in pioneering a path forward for measuring improvements in this patient population.
Potential Market Challenges
Despite potential market opportunities, current treatment practices indicate significant mortality and hospitalization rates, reflecting high unmet medical needs.
Company Guidance
During aTyr Pharma's fourth quarter and full year 2024 conference call, the company provided comprehensive guidance on their clinical developments and strategic outlook. They highlighted the completion of enrollment in the pivotal Phase 3 EFZO-FIT study for efzofitimod, aimed at treating pulmonary sarcoidosis. This trial involves 268 patients across 85 centers in nine countries, testing doses of 3 mg/kg and 5 mg/kg against a placebo over 52 weeks, with a primary endpoint focused on steroid reduction. The company also noted that 75% of diagnosed sarcoidosis patients are prescribed steroids, with the U.S. patient population being 30% larger than previously estimated. Additionally, they have observed four positive data and safety monitoring board reviews with no safety concerns. Financially, aTyr ended 2024 with $75.1 million in cash, supplemented by $18.8 million from an ATM offering. They project their cash runway will last through a year following the Phase 3 readout. The company also discussed plans for commercial readiness and the potential for efzofitimod in a $2-5 billion ILD market, with sarcoidosis representing a significant portion.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.