Athira Pharma laying off 49 employees, about 70% of workforce, as part of restructuring

Seattle-based biotech company Athira Pharma is laying off 49 people, or about 70% of its workforce, as part of cost-cutting measures and a restructuring.

Athira, which went public in 2020, is developing drugs for Alzheimer’s disease and other neurodegenerative conditions. The company’s stock took a hit earlier this month after announcing that results from a phase 2/3 study were not successful.

The company said today that it is focusing on the advancement of ATH-1105, a potential treatment for ALS that is in Phase 1 trials.

Athira also announced that it terminated Andrew Gengos, chief business officer and chief financial officer, and Rachel Lenington, chief operating officer and chief development officer, effective Oct. 1.

The company appointed Robert Renninger, vice president of finance, as its new principal financial officer and principal accounting officer, effective Oct. 1.

The restructuring, which is expected to save the company $13.4 million on an annualized basis, will be complete by the end of the year, according to a regulatory filing.

The company had cash, cash equivalents and investments of $91.8 million as of June 30, down from $147.4 million at the end of last year. It reported a net loss of $26.9 million for the quarter ending June 30.

Athira’s current CEO, Mark Litton, took over in 2021 after former CEO Leen Kawas resigned following an investigation into the integrity of data in papers she co-authored as a graduate student that led to the founding of the company in 2011.

Athira raised $204 million in its IPO and was valued at around $670 million when it went public four years ago. The company’s market capitalization is now less than $20 million.