TLDR

• Athira Pharma stock jumped 73.4% in premarket trading after acquiring global rights to lasofoxifene, a Phase 3 breast cancer drug targeting ESR1 mutations
• The company secured an exclusive license from Sermonix Pharmaceuticals for the late-stage treatment currently enrolled in the ELAINE-3 trial with results expected mid-2027
• Athira closed a $90 million private placement led by Commodore Capital, Perceptive Advisors, and TCGX to fund the new oncology program
• The financing includes warrants that could generate up to $146 million more if exercised, extending the company’s cash runway into 2028
• Athira will pay Sermonix up to $100 million in milestone payments plus low single-digit royalties based on commercialization and sales targets

Athira Pharma stock rocketed 73.4% higher in premarket trading Thursday after announcing it secured global development and commercialization rights to lasofoxifene. The late-stage breast cancer treatment represents a sharp pivot for the clinical-stage biotech company.

Athira Pharma, Inc., ATHA

The drug targets metastatic breast cancer in patients with ESR1 mutations. These patients have already progressed through standard treatments and face limited options.

Athira obtained an exclusive global license from Sermonix Pharmaceuticals for the selective estrogen receptor modulator. The company also secured a parallel license from Ligand Pharmaceuticals covering manufacturing rights.

The ELAINE-3 Phase 3 clinical trial is already more than halfway enrolled. Data readout is expected in mid-2027.

Previous trial results offer reason for optimism. The ELAINE-2 study showed 13 months of progression-free survival in heavily pre-treated patients.

About 40% of breast cancer patients develop ESR1 mutations after their disease progresses on first-line therapies. This creates a substantial patient population for potential treatment.

Financing Details and Cash Runway

Athira announced a concurrent $90 million private placement to fund the new oncology program. Commodore Capital, Perceptive Advisors, and TCGX co-led the financing round.

The deal includes both common stock and pre-funded warrants. Additional Series A and Series B warrants could generate up to $146 million in extra capital if exercised.

The financing extends Athira’s operating runway into 2028. This gives the company time to advance both lasofoxifene and its existing ALS program ATH-1105.

The private placement is expected to close around December 23. Standard closing conditions still need to be satisfied.

Payment Structure and Licensing Terms

Athira will issue Sermonix a pre-funded warrant to purchase approximately 5.5 million shares. The warrant carries a value of roughly $34.9 million.

The company committed about $16.8 million to Sermonix vendors and ongoing monthly payments. These payments will be credited against future milestone obligations.

Athira faces up to $100 million in milestone payments tied to commercialization and sales targets. Royalties will range from sub-single digit to low-single digit percentages.

The company will also owe Ligand Pharmaceuticals up to $21 million per product in milestones. Royalties to Ligand will range from mid-single to low-double digits.

Athira assumed control of manufacturing and service agreements previously held by Sermonix. The company will also receive rights to income related to Henlius partnerships.

“This agreement for the rights to the Phase 3 lasofoxifene program for metastatic breast cancer is a step in building a pipeline with the potential to change lives and create enduring value,” said Mark Litton, President and CEO of Athira. The financing includes board designation rights for key investors and new registration obligations.

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