Athira Pharma CMO Departs, Interim Appointed

TL;DR

Athira Pharma's CMO is out, interim CMO in. Keep an eye on pipeline updates.

AI Summary

Athira Pharma, Inc. announced on September 15, 2024, the departure of its Chief Medical Officer, Dr. T. David Smith, and the appointment of Dr. Hans-Ulrich Demuth as interim Chief Medical Officer. The company also reported costs associated with exit or disposal activities, though specific financial details were not provided in this filing.

Why It Matters

Changes in key executive positions, especially in a clinical-stage biopharmaceutical company, can signal shifts in strategy or operational focus, potentially impacting the company's drug development pipeline.

Risk Assessment

Risk Level: medium — Executive departures and interim appointments can introduce uncertainty regarding leadership stability and strategic direction, especially in a development-stage biopharma company.

Key Players & Entities

• Athira Pharma, Inc. (company) — Registrant
• Dr. T. David Smith (person) — Chief Medical Officer (departing)
• Dr. Hans-Ulrich Demuth (person) — Interim Chief Medical Officer (appointed)
• September 15, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.0001 — nge on which registered Common Stock, $0.0001 par value per share ATHA The Nasdaq
• $2.8 m — l incur one-time costs of approximately $2.8 million, consisting primarily of cash sev
• $312,000 — nd benefits: An annual base salary of $312,000, with an annual discretionary target pe

Filing Documents

• atha-20240915.htm (8-K) — 60KB
• atha-ex10_1.htm (EX-10.1) — 27KB
• atha-ex10_2.htm (EX-10.2) — 91KB
• atha-ex99_1.htm (EX-99.1) — 21KB
• img60298552_0.jpg (GRAPHIC) — 38KB
• img60298552_1.jpg (GRAPHIC) — 38KB
• img247042425_0.jpg (GRAPHIC) — 17KB
• 0000950170-24-107031.txt ( ) — 474KB
• atha-20240915.xsd (EX-101.SCH) — 26KB
• atha-20240915_htm.xml (XML) — 5KB

05 Costs Associated with Exit or Disposal Activities

Item 2.05 Costs Associated with Exit or Disposal Activities. On September 15, 2024, Athira Pharma, Inc. (the "Company") committed to a workforce reduction that is expected to result in the termination of approximately 49 positions, representing approximately 70% of the Company's workforce (the "Restructuring"). The Company took this step to decrease its costs, extend its cash runway, and create a more streamlined organization to support its strategic priorities, including the continued development of ATH-1105. In connection with the Restructuring, the Company currently estimates it will incur one-time costs of approximately $2.8 million, consisting primarily of cash severance costs and termination benefits, which the Company expects to recognize in the third quarter of 2024. The Company expects to substantially complete the Restructuring by December 31, 2024. The estimates of costs and expenses that the Company expects to incur in connection with the Restructuring are subject to a number of assumptions and actual results may differ materially. The Company may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the Restructuring. On September 17, 2024, the Company issued a press release regarding the Restructuring, a copy of which press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. I tem 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. Departure of Executive Officers In connection with the Restructuring, on September 16, 2024 the Company terminated without cause the employment of Andrew Gengos, chief business officer and chief financial officer, effective October 1, 2024, and Rachel Lenington, chief operating officer and chief development officer, effective October 1, 2024. Appointment of Vice President of Finance as Principal Financial Officer a

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K contains certain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements are identified by such words as "believe," "expect," "anticipate" and words of similar import and are based on current expectations that involve risks and uncertainties, such as the Company's plans, objectives, expectations and intentions. All statements other than historical or current facts are forward-looking statements, including, without limitation, statements about the nature, timing and scope of potential workforce reductions, including the expected costs of potential workforce reductions and the anticipated period time over which such costs will be paid. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. These statements, like all statements in this report, speak only as of their date. Except as required by law, the Company does not undertake to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date hereof.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 10.1 Employment Offer Letter between the Registrant and Robert Renninger. 10.2 Change in Control Agreement between the Registrant and Robert Renninger. 99.1 Athira Pharma, Inc. press release dated September 17, 2024. 104 Cover Page Interactive Data File (formatted as Inline XBRL)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Athira Pharma, Inc. Date: September 17, 2024 By: /s/ Mark Litton Mark Litton President and Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR