Athira Pharma announced it has secured an exclusive global license for lasofoxifene, a selective estrogen receptor modulator, from Sermonix Pharmaceuticals, excluding Asia and certain Middle‑East territories. The deal also includes a pre‑funded warrant for Sermonix to purchase 5.5 million Athira shares at $0.001 each and milestone‑based royalty payments that could reach $100 million if commercial sales targets are met.
In addition to the licensing agreement, Athira completed a private‑placement financing that will raise up to $236 million. The transaction involves the issuance of 5.4 million common shares, pre‑funded warrants for 8.8 million shares at $6.35 each, and additional warrants for 21.3 million shares at $7.62 each. Proceeds will be used to advance lasofoxifene through its Phase 3 ELAINE‑3 trial, support the ALS candidate ATH‑1105, and fund working capital and general corporate purposes.
The financing extends Athira’s cash runway beyond the current 12‑month estimate, providing a buffer for future development milestones and positioning the company to pursue additional partnerships or acquisitions. The deal follows a period of financial strain, during which the company reported a net loss of $6.6 million in Q3 2025, a sharp improvement from the $28.7 million loss in Q3 2024, and a cash balance of $25.2 million as of September 30 2025.
Strategically, the acquisition of lasofoxifene marks a pivot from Athira’s traditional focus on neurodegenerative diseases to a high‑potential oncology portfolio. Lasofoxifene targets ER+/HER2‑ metastatic breast cancer patients with ESR1 mutations, a population that has limited treatment options and represents a significant unmet need. The Phase 3 ELAINE‑3 trial is expected to report data in mid‑2027, and the milestone payments and royalties provide a potential revenue stream that could transform Athira’s financial outlook.
The market responded positively to the announcement, with analysts noting that the combination of a late‑stage oncology asset and a substantial capital infusion addresses both pipeline diversification and liquidity concerns. CEO Mark Litton highlighted the “compelling signals of clinical activity” for lasofoxifene, while Sermonix CEO David Portman described the drug as a “preferred endocrine therapy” for patients with ESR1 mutations.
Athira’s management emphasized continued focus on cost discipline and strategic investments in high‑return verticals. The company’s guidance reflects confidence in scaling the oncology program while maintaining a disciplined approach to capital allocation, positioning Athira to navigate the competitive oncology landscape and capitalize on the unmet needs in metastatic breast cancer.
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