In a exceptional pivot, Athira Pharma is shifting its main focus from Alzheimer’s to oncology following a multi-year interval marked by medical failures and management turnover.
The Bothell, Wash.-based firm introduced right this moment that it has licensed a Section 3 breast most cancers drug from Sermonix Prescribed drugs, supported by $90 million in funding from a gaggle of healthcare funding companies. It might land an extra $146 million if the analysis yields promising outcomes.
Athira will concurrently proceed researching ATH-1105, its personal drug candidate for treating ALS.
Athira President and CEO Mark Litton referred to as the event “thrilling and transformative information.”
“By securing rights to this late-stage program — whereas additionally advancing pATH-1105 for ALS — we’re constructing a pipeline that we imagine has the potential to vary lives and create enduring worth,” Litton mentioned on LinkedIn. “We’re honored to have the backing of among the most revered biotechnology funds within the trade.”
Following the deal announcement, the corporate’s inventory rose 70% to $7 per share.
Athira has been by a tumultuous few years:
- Its Alzheimer’s illness drug candidate, referred to as fosgonimeton, stumbled after which failed a Section 2/3 trial final yr.
- That sank Athira’s inventory worth and triggered a layoff of 49 staff, or about 70% of its workforce in September 2024.
- In 2021, Athira CEO and President Leen Kawas resigned after it was confirmed she had altered pictures in scientific papers from her graduate research that helped kind the corporate’s basis.
Particulars on the deal
Beneath right this moment’s deal, Athira secures an unique license to develop and commercialize the breast most cancers remedy for nations exterior of Asia and choose Center Jap international locations. The drug, referred to as lasofoxifene, is presently in a medical trial that has enrolled over half of its goal affected person inhabitants, with preliminary outcomes anticipated in mid-2027.
The settlement gives Sermonix with 5.5 million shares of Athira’s inventory. The Seattle firm has additionally dedicated to paying Sermonix as much as $100 million plus restricted royalties if sure business targets are reached.
Three lead traders are backing the analysis: New York’s Commodore Capital, biotech hedge fund Perceptive Advisors, and California-based TCGX. Extra members are ADAR1, Blackstone Multi-Asset Investing, Kalehua Capital, Ligand Prescribed drugs, New Enterprise Associates (NEA), Spruce Avenue Capital and 9vc.
Athira raised $90 million by promoting inventory and warrants to traders, extending its money runway into 2028. If traders select to train these warrants sooner or later, the corporate might obtain as much as an extra $146 million to fund its medical packages.
“We’re proud to help this evolution and excited by the chance to ship significant influence for sufferers and shareholders alike,” mentioned Joseph Edelman, founder and CEO of Perceptive Advisors, in a assertion.
Relating to its personal ALS drug candidate, Athira this yr efficiently accomplished Section 1 security trials, and plans to start out Section 2 trials early subsequent yr.
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