Athira Pharma demitiu 49 funcionários, cerca de 70% da equipe, como parte da reestruturação. – GeekWire

## **Seattle-based biotech company Athira Pharma announces workforce reduction and restructuring**


Seattle, WA – Athira Pharma, a leading biotech company focused on the development of drugs for Alzheimer’s disease and other neurodegenerative conditions, has recently announced a significant reduction in its workforce. The company will lay off 49 employees, representing approximately 70% of its staff, as part of cost-cutting measures and a strategic restructuring plan.

This decision comes after Athira Pharma faced disappointing results from a recent phase 2/3 study. The trial, which aimed to evaluate the efficacy of a novel treatment for Alzheimer’s disease, did not meet the expected outcomes. As a result, the company’s stock experienced a decline in value, impacting its financial stability.

However, Athira remains committed to advancing medical research in the field of neurodegenerative diseases. In light of this, the company has shifted its focus towards the development of ATH-1105, a potential treatment for amyotrophic lateral sclerosis (ALS). ATH-1105 is currently in Phase 1 trials, showcasing promising results and potential therapeutic benefits for patients with this debilitating condition.

In addition to the workforce reduction, Athira Pharma also announced changes in its executive leadership team. Andrew Gengos, former Chief Business Officer and Chief Financial Officer, and Rachel Lenington, former Chief Operating Officer and Chief Development Officer, have been terminated, effective October 1st. The company has appointed Robert Renninger, previously the Vice President of Finance, as the new Principal Financial Officer and Principal Accounting Officer, starting on the same date.

The restructuring process is expected to yield significant cost savings, estimated at $13.4 million on an annualized basis. The company aims to complete the changes by the end of this year, optimizing its operations and ensuring a sustainable financial future.

Athira Pharma’s recent financial reports highlight the impact of the challenges faced in the past months. As of June 30th, the company had cash, cash equivalents, and investments totaling $91.8 million, down from $147.4 million at the end of the previous year. Additionally, the company reported a net loss of $26.9 million for the quarter ending June 30th.

With a new CEO at the helm, Mark Litton, who assumed the position in 2021, Athira Pharma aims to navigate these challenges and regain its position as a leading player in the biotech industry. Litton took over from former CEO Leen Kawas, who resigned after an investigation into the integrity of research data that she co-authored as a graduate student, leading to the establishment of the company in 2011.

Despite the recent setbacks, Athira remains optimistic about its future prospects. The company initially went public in 2020 and successfully raised $204 million in its initial public offering (IPO), valuing the company at approximately $670 million. Today, however, its market capitalization has significantly decreased, currently standing at less than $20 million.

As the company focuses on its restructuring efforts and the advancement of ATH-1105, the biotech community eagerly anticipates further updates and breakthroughs in the treatment of Alzheimer’s disease and ALS. Athira Pharma’s commitment to science and innovation remains unwavering as it strives to make a lasting impact on patients’ lives and significantly contribute to the field of neurodegenerative research.

## Key Points:

– Athira Pharma, a Seattle-based biotech company, is undergoing a workforce reduction and restructuring.
– Approximately 70% of the employees, totaling 49 people, will be laid off as part of cost-cutting measures.
– The decision follows disappointing results from a recent phase 2/3 study focusing on Alzheimer’s disease treatment.
– The company will now prioritize the development of ATH-1105, a potential treatment for ALS currently in Phase 1 trials.
– Changes in the executive leadership team have also been announced, including terminations and new appointments.
– The restructuring process is expected to save Athira Pharma $13.4 million annually.
– As of June 30th, the company had cash, cash equivalents, and investments totaling $91.8 million.
– Mark Litton took over as CEO in 2021, succeeding Leen Kawas following an investigation into research data integrity.
– Athira Pharma raised $204 million in its IPO in 2020, but its market capitalization has significantly decreased since then.
– The company remains dedicated to scientific advancements in the field of neurodegenerative diseases.