BOTHELL, Wash. - Athira Pharma, Inc. (NASDAQ: ATHA), a biopharmaceutical company engaged in the development of treatments aimed at restoring neuronal health, has reached a preliminary settlement in a shareholder derivative lawsuit, according to a U.S. District Court for the Western District of Washington order. The settlement includes corporate governance reforms and payment of legal fees and expenses.
The legal action, involving claims filed nominally on behalf of Athira against certain individual defendants, is linked to two cases known as Bushansky v. Kawas et al. and Houlihan v. Kawas et al. Under the settlement terms, Athira will implement specified corporate governance reforms. Additionally, the company will cover attorney's fees, litigation expenses, and awards for the lead plaintiffs.
A final approval hearing for the settlement is scheduled for July 18, 2024. In compliance with the court's order, relevant materials such as the settlement stipulation, notices regarding the settlement, and details about the hearing, including Zoom (NASDAQ:ZM) meeting information, have been made available on the Investor Relations section of Athira's website.
Athira, headquartered in the Seattle area, is currently conducting the Phase 2/3 LIFT-AD trial to evaluate fosgonimeton for the potential treatment of mild-to-moderate Alzheimer's disease, with expected topline data to be reported in the latter half of 2024.
The announcement of this settlement comes as Athira continues to focus on advancing its pipeline of therapeutic candidates. These candidates are designed to modulate the neurotrophic HGF system, a novel approach to addressing neurological diseases. The company has emphasized its commitment to altering the course of such diseases through its ongoing clinical trials.
InvestingPro Insights
As Athira Pharma, Inc. (NASDAQ: ATHA) navigates through its legal settlement and continues its clinical trials, investors are keeping a close eye on the company's financial health and market performance. Here are some insights based on real-time data from InvestingPro and InvestingPro Tips that may be of interest to those following the biopharmaceutical firm:
Athira's market capitalization stands at 96.58 million USD, a figure that gives investors a sense of the company's size and market value. Despite the challenges, Athira has shown a significant return over the last week with a 1 Week Price Total Return of 27.83% and an even stronger performance over the last six months, boasting a 60.36% return. This suggests a potential investor confidence in the company's future despite its recent hurdles.
InvestingPro Tips highlight that Athira holds more cash than debt on its balance sheet, which can be a positive sign of financial stability. However, the company is quickly burning through cash and analysts do not expect it to be profitable this year. In addition, Athira's valuation implies a poor free cash flow yield, and it suffers from weak gross profit margins. These factors may influence investment decisions, especially for those looking at long-term profitability and operational efficiency.
For investors seeking more in-depth analysis and additional InvestingPro Tips, there are 10 more tips listed on InvestingPro's platform, which can be accessed at https://www.investing.com/pro/ATHA. To enhance the value of your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As Athira Pharma aims to restore neuronal health and tackle neurological diseases, its financial metrics and market performance will remain key areas of interest for stakeholders and potential investors alike.
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