Pharma To Date

Athira Pharma is undergoing a significant transformation after its Alzheimer's candidate, fosgonimeton, failed to meet expectations in a phase 2/3 clinical trial. In response, the biotech company has announced layoffs affecting 70% of its workforce, signaling a pivot toward developing ATH-1105, a promising small molecule for the treatment of amyotrophic lateral sclerosis (ALS). This shift is accompanied by changes in leadership, with several key executives set to depart by October 2024.

The decision to focus on ALS reflects the company’s strategic realignment following the disappointment in Alzheimer’s research. ATH-1105, an oral drug candidate, offers hope due to its enhanced blood-brain-barrier penetration and improved pharmacokinetic properties. Early preclinical data demonstrated that ATH-1105 reduced pathological protein accumulation in ALS-affected mice, indicating its potential therapeutic benefits.

Athira's move to streamline its operations, including laying off around 49 employees, is expected to generate annual savings of $13.4 million and extend the company's cash runway through the first quarter of 2026. The restructuring also includes the departure of Chief Business Officer and CFO Andrew Gengos, as well as COO Rachel Lenington. Their roles will be absorbed by other members of the company, including Robert Renninger, who will take on the responsibilities of both principal financial officer and principal accounting officer.

This pivot is crucial for the company as it seeks to preserve resources and advance ATH-1105, a first-in-class candidate that could offer a new therapeutic option for ALS, a neurodegenerative disease with limited treatment options. Given the urgency of finding effective treatments for ALS, Athira’s focus on this area could potentially position it as a key player in the field.

Athira’s challenges and changes reflect broader trends in biotech, where companies must adapt swiftly to setbacks in order to remain competitive. By shifting resources to ALS, the company is aiming to leverage its expertise and technology for a high-need therapeutic area.