Athira Pharma (ATHA) ($24MM market cap) is a biotech centered on remedies to revive neuronal well being and sluggish neurodegeneration.  On 9/3, the corporate introduced its Phase 2/3 trial of fosgonimeton for mild-to-moderate Alzheimer’s Disase did not meet its primary or secondary endpoints.  Quite than waiving the white flag and launching a strategic alternate options course of, two weeks after, they introduced Athira was going to focus on its earlier stage ALS treatment, ATH-1105, together with a 70% workforce reduction-in-force.

In keeping with their funding intent, every Reporting Particular person could occasionally focus on with the Issuer’s administration, administrators, different shareholders and others, the Issuer’s efficiency, enterprise, strategic path, capital construction, product growth program, prospects and administration, in addition to varied methods of maximizing stockholder worth. Representatives of the Reporting Individuals are engaged in discussions with the Issuer’s administration and different third events with respect to a possible extraordinary transaction involving the Issuer and different third events. There isn’t a assurance that any such transaction will develop or materialize, or if it does, as to its timing or whether or not the Reporting Individuals will take part.

This certain feels like Perceptive is making an attempt to rearrange a reverse merger transaction with Athira Pharma because the shell.  This concept is somewhat riskier, Athira hasn’t declared strategic alternate options and has some fairly vital money burn, time is not on Perceptive’s aspect to a get a deal carried out.  If we get nicely into 2025 and there isn’t any deal, the money burn may push the corporate to lift fairness and pursue the unique plan.

This is my again of the envelope math on Athira:

Disclosure: I personal shares of ATHA