Athira Pharma Reports $9.1 Million Net Loss in Q1 2025, Focuses on ATH-1105 Development

Athira Pharma, Inc. reported a net loss of $9.1 million for the first quarter of 2025, a significant decrease from the $26.3 million loss recorded in the same period of 2024. The company’s total operating expenses also fell to $9.5 million, down 66% from $27.7 million year-over-year. This reduction was primarily driven by a substantial decrease in research and development expenses, which dropped from $21.2 million to $4.3 million, largely due to the completion of the Phase 2/3 LIFT-AD clinical trial for its previous lead drug candidate, fosgonimeton. General and administrative expenses also decreased by 19%, reflecting cost-cutting measures following a workforce reduction that eliminated approximately 70% of the company's staff in September 2024.

As of March 31, 2025, Athira reported total assets of $43.5 million, down from $58.8 million at the end of 2024. The company’s cash and cash equivalents decreased to $26.4 million from $48.4 million, while short-term investments rose to $10.2 million from $2.8 million. The accumulated deficit increased to $415.3 million, indicating the ongoing financial challenges faced by the company as it continues to invest heavily in its drug development programs without generating revenue from product sales.

Strategically, Athira has shifted its focus to the clinical development of ATH-1105, a small molecule drug candidate aimed at treating amyotrophic lateral sclerosis (ALS). The company completed a Phase 1 trial for ATH-1105 in November 2024, which demonstrated a favorable safety profile. Following the disappointing results from the fosgonimeton trials, Athira is exploring strategic alternatives, including potential partnerships or acquisitions, to maximize stockholder value. The company has engaged Cantor Fitzgerald & Co. to assist in this strategic review process.

Looking ahead, Athira anticipates that its existing cash reserves will be sufficient to fund operations for at least the next 12 months. However, the company acknowledges the need for substantial additional funding to support the ongoing development of ATH-1105 and other potential drug candidates. The ability to raise capital may be influenced by market conditions and the company's performance, particularly as it navigates the complexities of drug development and regulatory approval processes. The company is also addressing compliance with Nasdaq listing requirements, having transferred its stock listing to the Nasdaq Capital Market to gain additional time to meet the minimum bid price requirement.