Athira Pharma: Hold Rating Amid Strategic Uncertainty and Resource Challenges

Mizuho Securities analyst Graig Suvannavejh has maintained their neutral stance on ATHA stock, giving a Hold rating on March 2.

Graig Suvannavejh has given his Hold rating due to a combination of factors surrounding Athira Pharma’s current strategic position and future prospects. The company is exploring strategic alternatives, which could include a significant transaction, but there is uncertainty about the timing and nature of such a move. While Athira’s ATH-1105 has shown positive Phase 1 data and potential for treating ALS, the company lacks the resources to advance the program independently and a partnership seems unlikely due to challenges in the ALS space and previous negative trial outcomes.
Additionally, the discontinuation of their prior lead asset, fosgonimeton, and the resulting restructuring have left Athira in a precarious position. The likelihood of a reverse merger is higher than securing a partnership, which adds to the uncertainty. Given these factors, Suvannavejh suggests that investors might find better growth opportunities elsewhere, as the visibility on Athira’s future developments remains low.