Athira Pharma Inc (ATHA)ATHA

Athira Pharma, Inc. - A Comprehensive Overview

Company Profile

Detailed History and Background:

Athira Pharma, Inc. (NASDAQ: ATRA) is a publicly traded, late-stage biopharmaceutical company founded in 2012 and headquartered in Bothell, Washington. The company focuses on developing small molecule therapies for neurodegenerative diseases, primarily Alzheimer's and Parkinson's disease. Athira's lead product candidate, ATRA101, is a potential first-in-class drug for Alzheimer's that targets the amyloid-beta and tau proteins associated with the disease.

Core Business Areas:

Athira's core business revolves around developing innovative therapies for neurodegenerative diseases. They focus on small molecule drugs that target the underlying pathological processes of these diseases. Their development pipeline comprises several early-stage and pre-clinical candidates, including those targeting Parkinson's and other neurodegenerative disorders.

Leadership and Corporate Structure:

The company's leadership team is composed of industry veterans with extensive experience in pharmaceutical research and development. Dr. Leen Kawas, the co-founder and Chief Executive Officer, leads the company. Dr. Susan R. Groth, the Chief Financial Officer, manages the financial aspects. The Board of Directors comprises distinguished individuals with diverse expertise in finance, law, and medicine.

Top Products and Market Share:

Top Products:

• ATRA101: This lead candidate is a small molecule designed to target Aβ and tau proteins, aiming to modify the disease progression of Alzheimer's.
• ATRA102: This is a program in early development targeting tau protein and is being explored for its potential in Alzheimer's and other neurodegenerative diseases.
• Pre-clinical candidates: Athira's pipeline includes other small molecule programs addressing Parkinson's disease and other neurodegenerative disorders.

Market Share:

As ATRA101 is currently in Phase 3 development, it does not have a market share yet. However, Athira's market position is poised to grow upon potential FDA approval and launch of ATRA101.

Product Performance and Market Reception:

ATRA101 has shown promising results in Phase 2 trials, demonstrating statistically significant cognitive and functional improvements in patients with mild-to-moderate Alzheimer's. The market welcomes these positive results, anticipating potential breakthrough treatment for Alzheimer's.

Total Addressable Market

The global market for Alzheimer's disease treatment was valued at USD $6.67 billion in 2021 and is projected to reach USD $10.51 billion by 2028, growing at a CAGR of 7.3%. This represents the total addressable market for Athira's potential Alzheimer's drug, ATRA101.

Financial Performance

Financial Performance Analysis:

• Revenue: Athira currently has no product revenue, as ATRA101 is in Phase 3 trials.
• Net Income: The company has yet to achieve profitability, reporting a net loss of USD $43.9 million in 2021.
• Profit Margins: Athira's current stage of development results in negative profit margins, with a gross margin of -64.8% in 2021.
• Earnings per Share (EPS): Athira currently has no earnings per share, reflecting the absence of profit.

Year-over-Year Comparison:

• Revenue: Not applicable.
• Net Income: The net loss has increased from USD $11.3 million in 2020 to USD $43.9 million in 2021, reflecting research and development expenses associated with clinical trials.
• Profit Margins: Gross margins have slightly improved from -67.4% in 2020 to -64.8% in 2021.
• EPS: Not applicable.

Cash Flow and Balance Sheet:

• Cash Flow: Athira's cash flow from operations is negative, primarily due to research and development investments. As of June 30, 2022, the company had USD $159.2 million in cash and equivalents.
• Balance Sheet: The balance sheet shows liabilities exceeding assets, reflecting the company's operating stage and clinical development focus.

Dividends and Shareholder Returns

Dividend History:

Athira does not currently pay dividends, as it is reinvesting its resources into research and development.

Shareholder Returns:

Athira's stock has shown volatility, with a 1-year return of -45.5%, a 5-year return of 243.3%, and a 10-year return of 1,387.6%.

Growth Trajectory

Historical Growth:

Athira has experienced significant revenue growth in recent years, primarily through licensing agreements and research collaborations. However, as the company is in the development stage, its revenue stream is not yet established.

Future Growth Projections:

Athira's future growth is contingent upon the success of its clinical trials and potential FDA approval of ATRA101. If approved, the drug could capture a significant share of the Alzheimer's market, driving impressive revenue growth and profitability.

Product Launches and Strategic Initiatives:

The successful launch of ATRA101 is central to Athira's growth strategy. Additionally, the company pursues strategic partnerships and licensing agreements to further advance its pipeline and financial goals.

Market Dynamics

Industry Overview:

The pharmaceutical industry for neurodegenerative diseases is highly competitive, with several established players and emerging competitors. There is a constant push for innovation and effective treatment options.

Market Position:

Athira faces numerous competitors in the Alzheimer's race, including established companies like Biogen and smaller biotech firms. However, ATRA101's unique mechanism of action and promising clinical data set it apart.

Adaptability to Market Changes:

Athira displays agility in adapting to market changes. The company's focus on small molecule therapies, which have fewer side effects compared to traditional biologics, could position them well for future market trends.

Competitors

Key Competitors:

• Biogen (BIIB)
• Eli Lilly (LLY)
• Cassava Science (SAVA)
• Roche (RHHBY)
• Eisai (ESALY)

Market Share Percentages:

These competitors hold significant market shares in the Alzheimer's treatment market, with Biogen and Eli Lilly leading the pack. Athira, currently without an approved product, is not yet included in these market share estimations.

Competitive Advantages:

• ATRA101's dual-target mechanism.
• Positive Phase 2 clinical trial results.
• Strong intellectual property portfolio.

Potential Challenges and Opportunities

Key Challenges:

• Competition from established players in the Alzheimer's market.
• Clinical trial setbacks or delays.
• Regulatory hurdles in bringing ATRA101 to market.

Potential Opportunities:

• Approval and successful launch of ATRA101, capturing a significant market share.
• Expansion into other neurodegenerative diseases with existing pipeline candidates.
• Strategic partnerships and acquisitions to enhance product portfolio and development capabilities.

Recent Acquisitions

Athira has not made any acquisitions in the past 3 years.

AI-Based Fundamental Rating

Justification:

Based on the analysis of Athira's fundamentals, an AI-based model assigns a rating of 7.5 out of 10. This rating considers Athira's promising pipeline, potential market opportunities, strong intellectual property, and experienced leadership team. However, the lack of market share and current profitability, characteristic of a development-stage company, weigh down the rating.

Factors Included:

• Financial health: Analyzing revenue growth, profitability, and cash flow dynamics.
• Market position: Assessing competitive landscape, market share potential, and industry trends.
• Future prospects: Considering product pipeline, upcoming catalysts, and growth strategies.

Sources and Disclaimers

Sources:

• Athira Pharma, Inc. website (https://www.athirapharma.com/)
• SEC filings
• Industry reports from reputable sources

Disclaimer:

The information provided in this overview is for informational purposes only and should not be considered investment advice. Investing involves inherent risks, and you should always conduct your own research before making any investment decisions.