Athira Pharma has announced a significant strategic shift, transitioning its primary focus from Alzheimer’s treatments to oncology. The Bothell, Washington-based firm has secured a Phase 3 breast cancer drug, lasofoxifene, from Sermonix Pharmaceuticals, bolstered by a funding package of $90 million from various healthcare investment firms.
This new agreement allows Athira to develop and commercialize the breast cancer medication in regions outside Asia and select Middle Eastern countries. The drug is currently undergoing clinical trials, with results anticipated in mid-2027. If successful, Athira could receive up to an additional $146 million based on research outcomes.
Following the announcement, Athira's stock surged by 70% to reach $7 per share. In parallel, the company will continue its efforts on ATH-1105, a drug candidate aimed at treating ALS. CEO Mark Litton described the deal as "exciting and transformative," reflecting the company's commitment to building a robust pipeline.
Recent years have been challenging for Athira, including the failure of its Alzheimer’s candidate fosgonimeton and a significant workforce reduction. The company has faced leadership changes, including the resignation of former CEO Leen Kawas in 2021 after ethical concerns related to her academic work.