Perceptive Engaged on a Reverse-Merger?

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

In line with their funding intent, every Reporting Individual could once in a while talk about with the Issuer’s administration, administrators, different shareholders and others, the Issuer’s efficiency, enterprise, strategic route, 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 a bit riskier, Athira hasn’t declared strategic options and has some fairly important money burn, time is not on Perceptive’s aspect to a get a deal completed.  If we get effectively 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