Athira Pharma Reports 77% Improvement in Quarterly Net Loss, Focuses on ALS Drug Development

Athira Pharma, Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending September 30, 2025. The company recorded a net loss of $6.6 million for the quarter, a substantial decrease from the $28.7 million loss reported in the same period last year, marking a 77% improvement. For the nine months ended September 30, 2025, the net loss was $22.7 million, down from $81.9 million in the prior year, reflecting an 72% reduction in losses. Total operating expenses for the third quarter were $6.9 million, a decrease of 77% compared to $29.6 million in the previous year, primarily driven by reduced research and development costs.

The company’s research and development expenses fell dramatically, from $17.9 million in Q3 2024 to $2.8 million in Q3 2025, a decrease of 84%. This reduction was largely attributed to the completion of the Phase 2/3 LIFT-AD clinical trial for its previous lead drug candidate, fosgonimeton, which has since been paused. General and administrative expenses also decreased by 47% to $4.0 million, down from $7.6 million, primarily due to lower personnel-related costs following a significant workforce reduction in 2024.

Athira's cash and cash equivalents stood at $20.9 million as of September 30, 2025, a decline from $48.4 million at the end of 2024. The company has not generated any revenue from drug sales since its inception and continues to rely on external funding to support its operations. Athira has raised approximately $407.4 million since its inception, primarily through equity sales. The company has an "at-the-market" equity offering facility that allows it to raise up to $75 million, although it has not yet utilized this option.

In terms of strategic developments, Athira is focusing on its lead drug candidate, ATH-1105, which is currently in clinical development for the treatment of amyotrophic lateral sclerosis (ALS). The company is exploring potential partnerships and strategic alternatives to maximize shareholder value, including possible mergers or acquisitions. The recent reverse stock split, effective September 17, 2025, aimed to comply with Nasdaq's minimum bid price requirement, which the company successfully met shortly thereafter.

Looking ahead, Athira anticipates continued operating losses as it advances ATH-1105 through clinical trials and invests in its drug development programs. The company expects its current cash reserves to fund operations for at least the next 12 months, but it will need to secure additional funding to support ongoing and future development efforts. The management remains cautious about the uncertainties inherent in drug development and the need for substantial capital to achieve its objectives.