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Athira Pharma reports progress in Alzheimer's treatment

EditorTanya Mishra
Published 07/31/2024, 10:27 AM
ATHA
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BOTHELL, Wash. - Athira Pharma, Inc. (NASDAQ: ATHA), a biopharmaceutical company, presented new preclinical data at the Alzheimer’s Association International Conference 2024, offering insights into the therapeutic potential of its drug candidate fosgonimeton. The findings, which were showcased in Philadelphia, suggest that fosgonimeton may play a role in reducing key Alzheimer’s disease-related protein pathology.

The research indicated that fosgonimeton can mitigate amyloid-β-induced toxicity and lower levels of phosphorylated tau (pTau), a protein associated with neurodegeneration in Alzheimer's disease. Additionally, the treatment was shown to protect primary neurons from amyloid-β toxicity, both as a standalone therapy and in combination with lecanemab, an amyloid-β-targeting monoclonal antibody.

Athira's drug candidate, fosgonimeton, is a small molecule designed to restore neuronal health and potentially slow the progression of neurodegenerative diseases. The compound is being evaluated in the Phase 2/3 LIFT-AD clinical trial, with topline results expected by the end of the third quarter of 2024.

The company is targeting the neurotrophic hepatocyte growth factor (HGF) system with the aim of addressing a broad spectrum of neurodegenerative diseases, including Alzheimer's disease, Parkinson's disease, and dementia with Lewy bodies.

The preclinical data presented at the conference support the continued investigation of fosgonimeton and its potential to impact Alzheimer's disease pathology. However, it is important to note that these are preclinical findings and further research is required to confirm the efficacy and safety of the drug in clinical settings.

Athira Pharma has reached a preliminary settlement in a shareholder derivative lawsuit, according to an order from the U.S. District Court for the Western District of Washington. The settlement includes the implementation of corporate governance reforms and the coverage of legal fees and expenses.

This development comes as Athira continues to advance its pipeline of therapeutic candidates, including the Phase 2/3 LIFT-AD trial to evaluate fosgonimeton for the potential treatment of mild-to-moderate Alzheimer's disease.

InvestingPro Insights

Athira Pharma, Inc. (NASDAQ: ATHA) has been making waves with its innovative approach to treating neurodegenerative diseases, and the latest preclinical data for its drug candidate fosgonimeton is no exception. As investors and analysts digest the implications of this research, it's crucial to consider the financial health and market performance of the company to get a fuller picture of its potential.

InvestingPro data reveals that Athira Pharma holds a market capitalization of $121.89 million. While this positions the company as a smaller player in the biopharmaceutical industry, it's noteworthy that the stock has experienced a significant 3-month price total return of 66.5%. This indicates a robust investor confidence over the recent quarter, which could be attributed to the promising developments in their drug trials. However, the company's P/E ratio stands at -1.05, reflecting its current lack of profitability.

Among the "InvestingPro Tips," two stand out in the context of Athira's recent developments. Firstly, Athira has more cash than debt on its balance sheet, which is a positive sign for its financial stability, especially as it navigates the costly process of drug development and clinical trials. Secondly, despite the promising preclinical results, analysts do not expect the company to be profitable this year. This underscores the long road ahead before potential revenues from fosgonimeton might be realized.

For investors interested in a deeper dive into Athira's financials and performance metrics, InvestingPro offers additional tips and insights. With the use of the coupon code PRONEWS24, users can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 10 more "InvestingPro Tips" available at https://www.investing.com/pro/ATHA that could provide further guidance on Athira Pharma's investment potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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