Athira Pharma Acquires Late-Stage Breast Cancer Drug Lasofoxifene in $90 Million Deal
Key Insights
Athira Pharma acquired exclusive global rights to lasofoxifene, a breast cancer treatment currently in a potentially registrational Phase 3 trial with data expected in mid-2027.
The company secured $90 million in private placement financing to support lasofoxifene development through key clinical and regulatory milestones with runway into 2028.
Sermonix Pharmaceuticals (search) will receive a pre-funded warrant for approximately 5.5 million shares and up to $100 million in milestone payments based on commercialization success.
Athira Pharma Inc. (NASDAQ:ATHA) announced Thursday the acquisition of exclusive global development and commercialization rights to lasofoxifene, a clinical-stage treatment for metastatic breast cancer (search) currently in a potentially registrational Phase 3 trial. The deal, coupled with $90 million in private placement financing, sent the company's stock soaring 74% to $7.22, reaching a new 52-week high of $8.36 during the session.
Late-Stage Asset with Near-Term Data
The acquired asset, lasofoxifene, is being evaluated in the ongoing Phase 3 ELAINE-3 clinical trial for treatment-resistant metastatic breast cancer (search). The trial is greater than 50% enrolled, with topline data expected in mid-2027. This timeline positions Athira to potentially have a registrational dataset within the next three years.
Under the licensing agreement with Sermonix Pharmaceuticals (search), Inc., Athira obtained exclusive global rights excluding Asia and certain countries in the Middle East. The geographic scope provides access to major pharmaceutical markets including North America and Europe.
Financial Structure and Milestone Payments
The acquisition involves a complex financial arrangement designed to align interests between both companies. Sermonix will receive a pre-funded warrant to purchase approximately 5.5 million shares of Athira stock with an exercise price of $0.001 per share. Additionally, Athira committed to milestone payments of up to $100 million based on achieving certain commercialization targets and annual net sales thresholds.
The transaction structure reflects confidence in lasofoxifene's commercial potential while providing Sermonix with both immediate equity participation and future revenue-based compensation tied to the drug's success.
Comprehensive Financing Package
Concurrent with the acquisition announcement, Athira secured $90 million in private placement financing from a coalition of banks. The financing package includes common stock and warrants, with the warrants providing potential access to an additional $146 million if exercised. This two-tiered funding approach gives Athira flexibility to access additional capital as development milestones are achieved.
The company stated that the upfront financing will support lasofoxifene development through its topline data readout and key regulatory milestones, providing sufficient capital runway into 2028. The private placement is expected to close around December 23.
Strategic Pivot and Market Response
The acquisition represents a significant strategic shift for Athira Pharma, adding a late-stage oncology asset to its pipeline. The company plans to use the net proceeds to fund lasofoxifene development for treatment-resistant metastatic breast cancer (search), support other clinical assets in its pipeline, and cover working capital and general corporate purposes.
Market reaction was overwhelmingly positive, with trading volume reaching 57.29 million shares compared to the average volume of 30.94 thousand shares. The stock's 74% surge reflects investor enthusiasm for acquiring a potentially registrational asset with near-term data catalysts. Year-to-date, Athira shares are now up 21%.