aTyr Pharma cuts 60% of staff to fund second phase 3 trial of lung disease drug efzofitimod

aTyr Pharma announced it will reduce its workforce by about 60%, leaving roughly 20 employees, to reallocate resources toward its lung disease program.

The cut follows the company's previous phase 3 trial of its immunomodulator efzofitimod in pulmonary sarcoidosis, which failed to meet the primary endpoint of lowering daily oral corticosteroid use.

aTyr plans to submit a new phase 3 protocol to the FDA, with a response expected by the end of the month, aiming for a second attempt at demonstrating efficacy.

With cash and equivalents of $58.9 million, the company said the layoffs are necessary to conserve capital while pursuing the revised trial.