Tvardi Therapeutics reported a Phase 2 failure for its STAT3 inhibitor in idiopathic pulmonary fibrosis after high dropout rates and efficacy that resembled placebo, triggering a sharp decline in the company’s share price. The company disclosed that adverse events led to patient withdrawals that undermined statistical power and outcome interpretation. The setback casts doubt on the candidate TTI-101 and raises questions about patient tolerability and trial design for STAT3-targeted approaches in fibrotic disease. Investors and partners will be watching how Tvardi adjusts its pipeline strategy and whether follow-up safety analyses will alter the program’s prospects.