Athira Pharma pivots to oncology with new licensing deal

An announcement from Athira Pharma ( (ATHA) ) is now available.

On December 18, 2025, Athira Pharma moved to reshape its portfolio and balance sheet by securing an exclusive license from Sermonix Pharmaceuticals and a parallel direct license from Ligand Pharmaceuticals to develop and commercialize oral lasofoxifene worldwide outside Asia and certain Middle Eastern countries, assuming control of the ongoing global Phase 3 ELAINE‑3 trial in ESR1‑mutated metastatic breast cancer and associated manufacturing and service agreements. As part of this Sermonix transaction, Athira will issue Sermonix roughly $34.9 million in equity via a large pre‑funded warrant, commit about $16.8 million to Sermonix vendors and ongoing monthly payments creditable against up to $100 million of future milestones and low single‑digit royalties, while taking over Sermonix’s rights to Henlius‑related income and replicating Sermonix’s prior economics with Ligand through up to $21 million in per‑product milestones and mid‑single‑ to low‑double‑digit royalties owed to Ligand. To fund this oncology pivot and its ALS program, Athira simultaneously signed a private placement with a syndicate led by Commodore Capital, Perceptive Advisors and TCGX for approximately $90 million in gross proceeds through common stock and pre‑funded warrants plus short‑dated Series A and Series B warrants that could raise substantial additional capital; the financing comes with board designation rights for key investors and registration obligations, and, together with existing cash, is expected to extend the company’s operating runway and the development of lasofoxifene and ATH‑1105 into 2028, while meaningfully increasing future dilution and bringing notable governance and capital‑allocation constraints tied to the new shareholders and licensing partners.

The most recent analyst rating on (ATHA) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Athira Pharma stock, see the ATHA Stock Forecast page.

Spark’s Take on ATHA Stock

According to Spark, TipRanks’ AI Analyst, ATHA is a Underperform.

Athira Pharma’s stock is weighed down by its financial performance, typical of an early-stage biotech firm with no revenue and high cash burn. Technical indicators show a lack of positive momentum, while valuation metrics reflect unprofitability. The stock’s prospects heavily depend on future product development and commercialization.

To see Spark’s full report on ATHA stock, click here.

More about Athira Pharma

Athira Pharma is a clinical-stage biopharmaceutical company focused on developing small‑molecule therapeutics for high unmet medical needs in oncology and neurology, including treatment‑resistant metastatic breast cancer and amyotrophic lateral sclerosis (ALS). Its lead programs are lasofoxifene, an oral selective estrogen receptor modulator in a registrational Phase 3 trial for ESR1‑mutated metastatic breast cancer, and ATH‑1105, a Phase‑2‑ready positive modulator of the neurotrophic HGF system for ALS, alongside earlier‑stage neurodegeneration assets such as ATH‑1020 and fosgonimeton. The company outsources manufacturing to contract development and manufacturing organizations and plans to rely on partners or third parties for any future commercialization, positioning itself as a developer of late‑stage, precision medicines in focused, high‑value markets.

Average Trading Volume: 30,079

Technical Sentiment Signal: Sell

Current Market Cap: $15.3M

For a thorough assessment of ATHA stock, go to TipRanks’ Stock Analysis page.