Athira Pharma’s Stock Plummets Following Disappointing Alzheimer’s Drug Trial Results

Stock Crash:
Athira Pharma's shares plummeted by 72.2% in after-hours trading on September 3, 2024, after the company announced disappointing top-line data from the phase II/III LIFT-AD study evaluating fosgonimeton for mild-to-moderate Alzheimer’s disease.

Trial Failure:
The LIFT-AD study failed to meet its primary endpoint, the Global Statistical Test (GST), which combines results from measures of cognition and function. It also missed key secondary endpoints related to changes in cognition, function, plasma biomarkers of neurodegeneration, protein pathology, and neuroinflammation.

Subgroup Analysis:
Despite the overall failure, in pre-specified subgroups of patients with moderate AD or those who are carriers of the APOE4 gene, cognition and function improved or stabilized in patients who received fosgonimeton compared to placebo.

Biomarker Analyses:
In prespecified biomarker analyses, cognition and function directionally favored treatment with fosgonimeton over placebo.

Market Impact:
The failure of fosgonimeton in the trial led to a significant decline in Athira Pharma's stock price, reflecting investor disappointment in the drug's potential for treating Alzheimer's disease.

Competitive Landscape:
Other companies like Biogen and Eli Lilly have seen success with their Alzheimer's treatments, Leqembi and Kisunla, respectively, highlighting the competitive nature of the Alzheimer's drug market.