ATHA Stock Tanks as Alzheimer's Study Fails to Meet Primary Goal

Company Overview - Athira Pharma, Inc. (ATHA) shares fell 72.2% in after-hours trading on September 3 due to disappointing results from the phase II/III LIFT-AD study for its candidate fosgonimeton in treating mild-to-moderate Alzheimer's disease (AD) [1] - The LIFT-AD study did not meet its primary endpoint, the Global Statistical Test (GST), which combines cognition and function measures [1] - Key secondary endpoints related to cognition, function, plasma biomarkers of neurodegeneration, protein pathology, and neuroinflammation were also not met [1] Study Results - In pre-specified subgroups of moderate AD patients or APOE4 gene carriers, cognition and function showed improvement or stabilization with fosgonimeton compared to placebo [2] - Prespecified biomarker analyses indicated that cognition and function, key measures of GST, favored treatment with fosgonimeton over placebo [2] Alzheimer's Disease Market - Biogen and Eisai's Leqembi received FDA approval for early AD treatment in July 2023, with expectations for blockbuster sales due to significant unmet needs in the AD market [3] - Eli Lilly's Kisunla (donanemab) was approved by the FDA in July 2024, making it the second drug available for early symptomatic AD [4] - Other companies, including Prothena Corporation, AC Immune, and Cassava Sciences, are also developing therapies for Alzheimer's disease [4] Stock Performance - Athira has seen a 16.4% increase in shares year-to-date, outperforming the industry growth of 0.6% [1] - Athira currently holds a Zacks Rank 2 (Buy) [5] - Illumina, Inc. (ILMN) is highlighted as a top-ranked stock in the biotech sector with a Zacks Rank 1 (Strong Buy) [5]