Bothell, WA-based Athira Pharma, Inc. has received a notification from Nasdaq stating that the company does not currently meet the minimum bid price requirement for continued listing on The Nasdaq Global Select Market. The biotechnology firm, which specializes in biological products, was informed on Monday that its common stock had closed below the $1.00 minimum bid for the past 30 consecutive business days.
The notice does not immediately affect Athira Pharma’s listing, and its stock continues to trade under the ticker symbol NASDAQ:ATHA. The company has until April 14, 2025, to regain compliance, which requires the stock to close at $1.00 or higher for at least 10 consecutive business days.
Should Athira Pharma fail to meet the requirement by the deadline, it may be eligible for an additional 180 days to regain compliance by transferring to the Nasdaq Capital Market, provided it meets certain conditions, including a potential reverse stock split.
In conjunction with this development, Athira Pharma also announced its intent to file a new registration statement on Form S-3 with the Securities and Exchange Commission. This move is proactive, given the impending expiration of the company’s current shelf registration statement set to expire on November 24, 2024.
The new registration statement would allow Athira Pharma to offer and sell securities up to $300 million, which was the unsold amount under the previous registration.
In other recent news, Athira Pharma has faced a series of significant changes following disappointing results from its Phase 2/3 LIFT-AD study for Alzheimer’s disease treatment, fosgonimeton. The trial did not meet its primary and secondary efficacy endpoints, leading to the termination of the fosgo program. As a result, Mizuho Securities downgraded Athira Pharma’s stock from “Outperform” to “Neutral” and significantly reduced the price target.
In a strategic pivot, Athira Pharma is now focusing on ATH-1105, a drug aimed at treating ALS currently in Phase 1 trials. The company also announced a workforce reduction by 70%. Despite these setbacks, analysts from Mizuho maintained an Outperform rating on Athira Pharma, while BTIG downgraded the company’s stock from Buy to Neutral due to concerns over the drug’s development path.
In addition to these developments, Athira Pharma has reached a preliminary settlement in a shareholder derivative lawsuit, which includes the implementation of corporate governance reforms and the coverage of legal fees and expenses. These recent developments reflect Athira Pharma’s ongoing commitment to advancing its pipeline of therapeutic candidates. The next significant milestone for Athira Pharma is anticipated to be the first top-line efficacy data for ATH-1105 in ALS, expected in 2026.
InvestingPro Insights
Recent InvestingPro data sheds light on Athira Pharma’s financial situation, providing context to the company’s Nasdaq listing challenges. The company’s market capitalization stands at a modest $18.07 million, reflecting its current struggles. Athira’s price-to-book ratio of 0.22 suggests the stock is trading below its book value, which could be of interest to value investors despite the company’s difficulties.
InvestingPro Tips highlight that Athira holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. These factors may provide some financial flexibility as the company works to address its listing issues. However, the tip that Athira is “quickly burning through cash” underscores the urgency of its situation.
The stock’s recent performance aligns with the Nasdaq notification, with InvestingPro data showing a significant 86.05% price decline over the past three months. This steep drop has led to another InvestingPro Tip indicating that the stock’s RSI suggests it may be in oversold territory, potentially of interest to contrarian investors.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Athira Pharma, providing a deeper understanding of the company’s financial health and market position.
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