Athira Pharma has been on a bumpy road in recent years, and, now, the company is restructuring and shedding weight to try to keep the journey going.
Just a couple of weeks after announcing that its Alzheimer’s disease candidate fosgonimeton failed to beat placebo in a phase 2/3 trial, Athira is laying off 70% of its staff and saying goodbye to several executives. The biotech is pivoting to focus on ATH-1105, an oral small molecule for amyotrophic lateral sclerosis (ALS).
“We are encouraged about the potential for ATH-1105, as this oral, next-generation HGF-modulating drug candidate has enhanced blood-brain-barrier penetration and improved pharmacokinetic properties,” Athira President and CEO Mark Litton, Ph.D., said in a Sept. 17 release.
The layoffs are expected to affect about 49 employees and will cost Athira about $2.8 million in the near term while leading to savings of approximately $13.4 million on an annual basis. The moves are expected to extend the company’s cash runway to the first quarter of 2026, Athira said in the release.
As part of the workforce reduction and restructuring, Athira is also laying off Andrew Gengos, chief business officer and chief financial officer, and Rachel Lenington, chief operating officer and chief development officer, effective Oct. 1, according to a Securities and Exchange Commission filing.
Also on that date, the company’s vice president of finance, Robert Renninger, will take over as principal financial officer and principal accounting officer.
In 2021, former Athira CEO Leen Kawas, Ph.D., was accused of altering images in multiple research papers she published from work done at Washington State University. Kawas was dismissed later that year and replaced by Litton.
Athira published data earlier this year showing that ATH-1105 decreased pathological protein accumulation in the sciatic nerve of mice with ALS. The Washington-based biotech is now conducting a first-in-human phase 1 trial with the molecule, which should begin dosing ALS patients in early 2025, according to the release.