Spyre Therapeutics (SYRE) fell as much as 14% in after-hours trading on Tuesday after the company said it will not advance SPY072 as a standalone treatment for rheumatoid arthritis. The stock was trading around $107.36 before the news.

The decision came after topline results from the rheumatoid arthritis sub-study of Spyre’s SKYWAY Phase 2 trial. Both doses of SPY072 beat placebo on key endpoints, but the response was not strong enough to meet Spyre’s internal threshold for monotherapy development in rheumatoid arthritis.

In the trial results, the low-dose group posted a change from baseline in DAS28-CRP of -1.9, compared with -1.3 for placebo at Week 12. The high-dose group recorded a 63% ACR20 response rate versus 43% for placebo. The low-dose group reached 38% on ACR50, compared with 19% for placebo.

The study enrolled 143 participants across three arms. Forty-eight participants received the high dose, 48 received the low dose, and 47 received placebo.

Safety findings were broadly consistent across groups. Adverse events were reported in 27% of SPY072 participants, compared with 36% in the placebo group, and most events were mild or moderate. For investors and watchers of the autoimmune drug pipeline, the readout matters because it shows the program is still active, but Spyre is narrowing its development focus toward combinations rather than a rheumatoid arthritis standalone path.

Spyre is not discontinuing SPY072 altogether. The company said it will continue evaluating the program in combination strategies, including use with an IL-17A/F inhibitor in its SPY772 program for hidradenitis suppurativa. Spyre expects data from that combination study in late 2027 or early 2028.

The company also has additional readouts ahead. Phase 2 data for SPY072 in psoriatic arthritis and axial spondyloarthritis are expected in the fourth quarter of 2026. Those results will offer another look at how the asset performs across inflammatory diseases after Tuesday’s rheumatoid arthritis update.

Spyre said the findings continue to support the broader potential of its TL1A antibodies in autoimmune disease, particularly as combination components rather than as standalone therapies.

Analyst sentiment has not changed following the after-hours decline. SYRE carries a Strong Buy consensus on Wall Street, supported by 13 Buy ratings and one Hold rating.

The average 12-month price target is $124.73, which implies about 16% upside from pre-announcement levels.

From a technical perspective, SYRE was trading above both its 20-day exponential moving average of $103.75 and its 50-day EMA of $96.37 before the announcement. Williams %R also showed a Buy signal, suggesting the stock was not overbought.

The next major test for SYRE will be the Phase 2 data readouts in psoriatic arthritis and axial spondyloarthritis in Q4 2026.