Athira Pharma (ATHA -2.38%), a biopharmaceutical company developing drugs for neurodegenerative diseases, released its second quarter results on August 7, 2025. The update centered on its cost containment, strategic pipeline refocus, and progress with its lead candidate, ATH-1105. Revenue was again zero, as expected for a clinical-stage company. The quarter showcased significant reductions in research and development expenses following the pipeline restructuring, but also highlighted an urgent need for future partnership or funding as the company advances ATH-1105 for amyotrophic lateral sclerosis (ALS) trials.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.18) | $(0.15) | $(0.70) | 74.3 % |
| Revenue (GAAP) | $0.0 | $0.0 | $0.0 | – |
| Research and Development Expenses | $3.7 million | $22.2 million | (83.4 %) | |
| General and Administrative Expenses | $3.6 million | $5.9 million | (38.8 %) | |
| Net Loss | $7.0 million | $26.9 million | (74.0 %) | |
| Cash, Cash Equivalents and Investments | $29.8 million | N/A | N/A |
Source: Analyst estimates for the quarter provided by FactSet.
Company Profile and Key Areas of Focus
Athira Pharma develops therapeutics for neurodegenerative conditions, including ALS and Alzheimer’s disease. Its central strategy is to harness the hepatocyte growth factor (HGF) pathway with small molecule drugs, aiming to slow or reverse neurodegeneration by promoting nerve cell function and survival.
Recent quarters have seen Athira narrow its operational focus. After pausing its earlier lead, fosgonimeton, following disappointing Alzheimer’s results, the business is now centered on advancing ATH-1105, a new candidate for ALS. Success depends on clinical development progress, securing partnerships, competitive differentiation, and maintaining enough capital for multi-year trials and commercialization.
Quarter in Review: Operational and Pipeline Updates
For the quarter ended June 30, 2025, the company implemented large-scale cost reductions. Management reduced research and development spending to $3.7 million (GAAP), an 83.3% drop compared to the prior year, and cut general and administrative costs by 38.8% to $3.6 million, compared to Q2 2024. Together, these actions brought Athira’s net loss (GAAP) to $7.0 million, a steep decline from the $26.9 million GAAP net loss in Q2 2024. The company maintained a zero-revenue profile, consistent with expectations for a firm still in clinical-stage development.
Cash reserves were $29.8 million as of June 30, 2025, down from $51.3 million as of December 31, 2024. This shrinking cash balance reflects ongoing operational spending. Operating cash use for the first six months of 2025 was $21.7 million, lower than the $48.1 million (GAAP) used in the same period ended June 30, 2024. This elevates the importance of cost discipline and accelerating business development efforts.
Pipeline development focused almost entirely on ATH-1105. This small molecule drug candidate targets the HGF pathway, aiming to slow nerve degeneration in ALS. During the period, the company completed a Phase 1 clinical trial in 80 healthy volunteers, with the study finishing in November 2024. The study demonstrated a favorable safety profile, tolerability at escalating doses, and the drug’s ability to cross the blood-brain barrier. These properties support the start of further clinical trials in patients. Athira presented these findings at the 4th Annual ALS Drug Development Summit.
Action on strategic alternatives continued. Management noted it had nearly finished preparations to launch a patient trial for ATH-1105 in ALS. However, it did not announce a concrete timeline for the trial or confirm a development partner. Instead, the company stated it is engaged in a process to maximize shareholder value, potentially including licensing deals or corporate partnerships. No new updates were given on its intellectual property portfolio, though the company’s patents for ATH-1105 remain in effect through at least 2037, based on issued patents as of December 31, 2024, with some protection possibly out to 2043.
Business Overview and Recent Strategic Shifts
Athira’s operational focus has narrowed following the halt of fosgonimeton, its former Alzheimer’s candidate, after underperforming in a previous Phase 2/3 trial. The pipeline is now concentrated on ATH-1105, which has shown positive effects in preclinical models for ALS. This approach clears the way for a more tightly managed and cash-preserving business, but also puts all future prospects on a single program’s success.
Success in the next phase of development for ATH-1105 will be crucial. While preclinical tests support its mechanism, management’s search for external partnerships or new capital will directly impact the timing and scope of upcoming clinical milestones as Athira’s financial resources dwindle.
Financial Outlook and Investor Watch Areas
The company did not provide forward financial or trial guidance for the remainder of 2025 or for 2026. There were no specifics on the expected timing of upcoming ALS patient studies or details on partnership negotiations. This lack of guidance adds uncertainty for shareholders and makes tracking operational cash run rate, partnership announcements, and further clinical updates key points for following the company in the months ahead.
ATHA does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
