aTyr Pharma's experimental drug efzofitimod failed its Phase 3 trial in pulmonary sarcoidosis, missing the primary goal of significantly reducing steroid use compared to placebo. Despite some reduction in steroid requirements, the difference did not reach statistical significance. Absence of a robust effect on steroid elimination led investors to sell off shares, plummeting more than 80%. The drug remains in testing for systemic sclerosis-related lung disease. These results challenge aTyr’s main clinical-stage asset's prospects amid high expectations for immunomodulatory therapies in inflammatory lung conditions.