Following news of failed pharmacological trials, Athira Pharma Inc.’s (NASDAQ: ATHA) stock price dropped precipitously. However, management thinks that even these subpar outcomes may be seen as the start of better things to come.
Athira Pharma reported this week that the findings of phase II clinical study for the treatment of mild to moderate Alzheimer’s disease with the medication fosgonimeton did not approach statistical significance.
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According to the firm, the applicant performed worse than anticipated in light of the study. The business also pointed out that the people using the medicine in addition to another therapy may have contributed to the failures.
Athira Pharma’s trial failures may be seen negatively by investors, but the business maintains that such failures might actually yield useful information for future studies.
The firm is specifically looking for subjects for a phase III trial of fosgonimeton to determine its effectiveness in treating Alzheimer’s disease. The phase II study was first conceptualized by Athira Pharma as a way to gather more information regarding the drug’s biological effects.
According to the recommendations, a subgroup examination of research participants revealed that fosgonimeton, not another medication also used in the trial, was the cause of the cognitive enhancement. In order to enhance the likelihood of success, the corporation intends to utilize this to modify the study’s settings.
Be aware that there is now no effective therapy to treat Alzheimer’s disease, and most firms’ attempts to produce such a drug have failed. As a result, the business that can be the first to satisfy this market need will be able to capture billions in revenue.
The management of Athira Pharma asserts that a potential candidate would improve cognitive function. Success, however, will rely on how well the outcomes of more experiments turn out. Athira Pharma is a hazardous investment at this time.
ATHA has a year-to-date performance of -78.89 percent. The stock’s price has plummeted -66.55 percent in the last week and -69.55 percent in the last month, according to the 7-day charts.