Athira Pharma will cut about 49 positions, including two people in the C-suite. The announcement follows the company’s disappointing results for its investigational Alzheimer’s therapy.
Athira Pharma will lay off about 70% of its workforce as part of cost-containment measures, the company has announced. The clinical-stage biopharma based in Bothell, Washington, expects its cuts of about 49 positions to be mostly complete by Dec. 31, according to an SEC filing. Those being laid off include Andrew Gengos, chief business officer and chief financial officer, and Rachel Lenington, chief operating officer and chief development officer, with both executives’ terminations effective Oct. 1.
The announcement comes shortly after Athira shared that its investigational injection fosgonimeton failed to significantly boost cognition or function in patients with mild to moderate Alzheimer’s disease in the Phase II/III LIFT-AD trial.
In its Sept. 17 announcement noting the layoffs, Athira said it will focus on advancing clinical development of ATH-1105 as a potential treatment for neurodegenerative diseases, including amyotrophic lateral sclerosis (ALS). ATH-1105 is in a Phase I trial, with completion expected by end of the year, according to the company. It plans to start dosing ALS patients in 2025.
Athira expects one-time costs of approximately $2.8 million and cost savings of approximately $13.4 million on an annualized basis related to the workforce reduction, according to the announcement. It noted that due to those cost-containment measures and based on its operating plan, it should be able to extend its cash runway into the first quarter of 2026. The company said it will also consider various options including partnering and financing with the intention to extend its cash runway to obtain initial proof of concept and enable further development for ATH-1105 in neurodegenerative diseases.
