What’s Behind the Surge in Athira Pharma Stock Following Breast Cancer Asset Purchase?

Stock Performance: Athira Pharma Inc. (NASDAQ: ATHA) saw a significant increase in stock price, rising 74.49% to $7.22, with a trading volume of 57.29 million shares compared to the average of 30.94 thousand.

Acquisition of Lasofoxifene: The company has acquired exclusive global rights (excluding Asia and certain Middle Eastern countries) from Sermonix Pharmaceuticals for the development and commercialization of lasofoxifene, a drug in a Phase 3 trial for metastatic breast cancer.

Financial Arrangements: Athira will issue a pre-funded warrant to Sermonix for approximately 5.5 million shares and may owe up to $100 million based on commercialization milestones, alongside securing $90 million in upfront private placement financing.

Funding and Development Plans: The financing is intended to support the development of lasofoxifene and other clinical assets, with sufficient capital projected to last into 2028, aiming for key clinical and regulatory milestones.