Tvardi Therapeutics’ stock plunged after its Phase II study of oral STAT3 inhibitor TTI‑101 in idiopathic pulmonary fibrosis (IPF) missed safety and efficacy goals and suffered high dropout rates. The company said it is analyzing the dataset to determine next steps. Preliminary results showed limited efficacy versus placebo and an elevated discontinuation rate driven by adverse events and tolerability issues. Investors sold off rapidly, reflecting the high sensitivity of smaller biotech valuations to mid‑stage readouts. The failure raises questions about STAT3 as an IPF target and underscores execution risk in fibrotic indications, where trial retention and drug tolerability often dictate outcomes as much as target biology.