Perceptive Engaged on a Reverse-Merger?

Athira Pharma (ATHA) ($24MM market cap) is a biotech targeted on therapies to revive neuronal well being and gradual neurodegeneration.  On 9/3, the corporate introduced its Part 2/3 trial of fosgonimeton for mild-to-moderate Alzheimer’s Disase didn’t meet its major or secondary endpoints.  Fairly than waiving the white flag and launching a strategic alternate options course of, two weeks after, they introduced Athira was going to deal with its earlier stage ALS remedy, ATH-1105, together with a 70% workforce reduction-in-force.

In line with their funding intent, every Reporting Particular person might occasionally talk about with the Issuer’s administration, administrators, different shareholders and others, the Issuer’s efficiency, enterprise, strategic route, capital construction, product improvement program, prospects and administration, in addition to varied methods of maximizing stockholder worth. Representatives of the Reporting Individuals are engaged in discussions with the Issuer’s administration and different third events with respect to a possible extraordinary transaction involving the Issuer and different third events. There isn’t any assurance that any such transaction will develop or materialize, or if it does, as to its timing or whether or not the Reporting Individuals will take part.

This positive seems like Perceptive is making an attempt to rearrange a reverse merger transaction with Athira Pharma because the shell.  This concept is a bit riskier, Athira hasn’t declared strategic alternate options and has some fairly important money burn, time is not on Perceptive’s facet to a get a deal finished.  If we get properly into 2025 and there isn’t any deal, the money burn may push the corporate to lift fairness and pursue the unique plan.

Here is my again of the envelope math on Athira:

Disclosure: I personal shares of ATHA