Why Is Athira Pharma Stock Spiking After Breast Cancer Asset Acquisition?
Athira Pharma Inc. (NASDAQ:ATHA) stock is trading higher on Thursday, with a session volume of 57.29 million compared to the average volume of 30.94 thousand as per data from Benzinga Pro.
Athira Pharma on Thursday agreed to acquire the rights for the development and commercialization of lasofoxifene, a clinical asset in a potentially registrational Phase 3 trial.
The ongoing Phase 3 ELAINE-3 clinical trial is greater than 50% enrolled, with data expected in mid-2027.
Athira has acquired an exclusive global license (excluding Asia and certain countries in the Middle East) from Sermonix Pharmaceuticals, Inc. for rights to develop and commercialize lasofoxifene for metastatic breast cancer.
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Sermonix License Agreement
Athira will issue to Sermonix, as partial consideration, a pre-funded warrant to purchase approximately 5.5 million shares, with an exercise price of $0.001 per share.
Athira will also be obligated to make certain payments to Sermonix of up to $100.0 million if Athira achieves certain commercialization or annual net sales milestones.
Financing
Athira also announced an upfront financing of $90 million in private placement financing of common stock and warrants, with the warrants providing, if exercised, up to an additional $146 million to support development of the new program through key clinical and regulatory milestones.
The company anticipates the upfront financing will support lasofoxifene development through its topline data readout and key regulatory milestones, with sufficient capital for runway into 2028.
Athira intends to use the net proceeds to fund the development of lasofoxifene for treatment-resistant metastatic breast cancer, and other clinical assets in its pipeline, and for working capital and general corporate purposes.
ATHA Price Action: Athira Pharma shares were up 74.49% at $7.22 at the time of publication on Thursday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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