Is Athira's R&D spending sustainable long-term?

**Athira's R&D spending appears to be sustainable in the long term**, considering the following points:

1. **Decrease in R&D Expenses**: Athira's R&D expenses decreased to $70.7 million in 2024, down from $93.8 million in 2023. This reduction is primarily due to decreased costs in the fosgonimeton program, indicating a more efficient use of resources.
2. **Strategic Shift**: After the Phase 2/3 trial results of fosgonimeton, Athira paused further development to focus on ATH-1105, a more promising candidate. This strategic shift suggests a prioritization of resources towards projects with higher potential for success.
3. **Financial Position**: Despite the decrease in R&D spending, Athira's cash position at the end of 2024 was $51.3 million, which is still substantial. This financial cushion provides the necessary flexibility to continue supporting R&D activities.
4. **Institutional Confidence**: Institutional ownership stands at 57.1% of Athira's shares, indicating strong confidence from major investors. This confidence can be a positive signal for the long-term sustainability of R&D spending.
5. **Pipeline Progress**: Athira's pipeline is advancing, with ATH-1105 moving into further clinical trials and expected to begin dosing ALS patients in 2025. The progress in pipeline development suggests a commitment to R&D that could be sustainable over the long term.

In conclusion, while R&D spending has decreased, the company's strategic adjustments, financial position, and ongoing pipeline progress indicate that Athira's R&D spending is likely sustainable in the long term.