Athira Pharma Shifts Focus to ALS After Alzheimer’s Setback, Cuts 70% of Workforce

Layoffs and Restructuring:
Athira Pharma has laid off approximately 70% of its workforce, affecting about 49 employees, including two C-suite executives, Andrew Gengos and Rachel Lenington.

Shift in Focus:
The company is pivoting its focus from Alzheimer's disease to amyotrophic lateral sclerosis (ALS) with a small molecule therapy, ATH-1105, which is currently in a Phase 1 clinical trial.

Alzheimer's Trial Results:
Athira's Phase 2/3 LIFT-AD clinical trial for fosgonimeton, a treatment for mild-to-moderate Alzheimer's disease, did not meet its primary endpoint or key secondary endpoints.

Financial Impact:
The layoffs are expected to cost Athira about $2.8 million in the near term but will lead to savings.

Future Plans:
Athira aims to complete the Phase 1 trial of ATH-1105 by the end of 2024 and plans to initiate trials in ALS patients in 2025.