Athira Pharma Reports 74% Reduction in Quarterly Net Loss, Shifts Focus to ATH-1105

Athira Pharma, Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded a net loss of $6.97 million for the quarter, a substantial decrease from the $26.86 million loss reported in the same period last year, marking a 74% reduction. For the six months ending June 30, 2025, the net loss was $16.11 million, down from $53.20 million in the prior year, reflecting a 70% decrease. Total operating expenses for the second quarter were $7.29 million, down 74% from $28.03 million in the previous year, primarily due to reduced research and development costs.

The company’s research and development expenses fell sharply, from $22.15 million in Q2 2024 to $3.66 million in Q2 2025, a decrease of 83%. This decline was largely attributed to the completion of the Phase 2/3 LIFT-AD clinical trial for its previous lead candidate, fosgonimeton, which resulted in a significant reduction in associated costs. General and administrative expenses also decreased by 38% to $3.63 million, down from $5.87 million, primarily due to lower personnel-related expenses.

Athira's total assets as of June 30, 2025, were reported at $35.55 million, a decrease from $58.78 million at the end of 2024. The company’s cash and cash equivalents stood at $19.89 million, down from $48.44 million at the end of the previous fiscal year. The accumulated deficit increased to $422.26 million, reflecting the ongoing investment in research and development without generating revenue from product sales, as the company has not yet commercialized any drug candidates.

Strategically, Athira has shifted its focus to the development of ATH-1105, a small molecule drug candidate aimed at treating neurodegenerative diseases. Following the disappointing results from the fosgonimeton trials, the company has paused its development and is exploring strategic alternatives, including potential partnerships or acquisitions. The company has engaged Cantor Fitzgerald & Co. to assist in this strategic review process. Athira anticipates that its current cash reserves will be sufficient to fund operations for at least the next 12 months, but it will require additional funding to support ongoing development efforts.

Looking ahead, Athira plans to continue advancing ATH-1105 through clinical trials while managing its operational costs. The company remains focused on establishing partnerships to enhance its development capabilities and is considering various strategic options to maximize shareholder value. However, the company acknowledges the inherent risks and uncertainties associated with drug development and the need for substantial additional funding to achieve its objectives.