Athira Pharma, Inc. (NASDAQ:ATHA), a clinical-stage biopharmaceutical company with a market capitalization of $21.7 million and currently showing weak financial health according to InvestingPro metrics, saw its President and CEO Mark James Litton recently execute a series of transactions involving the company's common stock. On December 31, 2024, Litton acquired 108,333 shares of common stock through the vesting of restricted stock units, with no monetary exchange involved as these were part of the company's equity incentive plan.
On January 2, 2025, Litton sold 25,107 shares of Athira Pharma stock at a weighted-average price of $0.5619 per share. This sale, totaling approximately $14,107, was conducted to cover tax withholding obligations associated with the vesting of restricted stock units. Following these transactions, Litton holds 242,591 shares directly. Additionally, he has indirect holdings of 6,563 shares each in three irrevocable trusts set up for his children. According to InvestingPro analysis, Athira Pharma currently shows signs of being undervalued, with 11 additional key insights available to subscribers through their comprehensive Pro Research Report, part of their coverage of over 1,400 US stocks.
In other recent news, Athira Pharma, Inc. has been warned by Nasdaq about potential delisting due to its stock's inability to meet the minimum bid price requirement. The company has until April 14, 2025, to regain compliance. Should it fail, Athira Pharma may have an additional 180 days to regain compliance by transferring to the Nasdaq Capital Market. The company also plans to file a new registration statement on Form S-3 with the Securities and Exchange Commission, allowing for the offering and sale of securities up to $300 million.
In the wake of disappointing results from its Phase 2/3 LIFT-AD study for Alzheimer's disease treatment, Mizuho (NYSE:MFG) Securities downgraded Athira Pharma's stock from "Outperform" to "Neutral". The company is now shifting its focus to ATH-1105, a drug aimed at treating ALS currently in Phase 1 trials. This shift was accompanied by a 70% workforce reduction. Despite these developments, Mizuho maintained an Outperform rating on Athira Pharma, while BTIG downgraded the company's stock from Buy to Neutral.
In addition to these changes, Athira Pharma has reached a preliminary settlement in a shareholder derivative lawsuit. The company's next significant milestone is expected to be the first top-line efficacy data for ATH-1105 in ALS, anticipated in 2026. These recent developments underscore Athira Pharma's commitment to advancing its pipeline of therapeutic candidates.
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