Tvardi Therapeutics’ Phase II study of its oral STAT3 inhibitor for idiopathic pulmonary fibrosis (IPF) failed to meet safety and efficacy endpoints and suffered high dropout rates, prompting an intraday stock collapse of over 80% on the news. The company said it is conducting deeper analyses to understand the trial readout and next steps. Preliminary results showed limited efficacy versus placebo and tolerability challenges that contributed to attrition. Tvardi plans to scrutinize the dataset to determine whether any subgroups or technical issues merit a modified development path, but the market reaction reflected investor concern about program viability and the company’s near‑term prospects. The failure underscores the difficulty of translating STAT3 inhibition into well‑tolerated, effective therapies for fibrotic lung disease.