What caused Athira's net profit to improve in 2024?

Athira Pharma, Inc. experienced an improvement in net profit from the previous year, with a net loss of $96.94 million in 2024 compared to $117.67 million in 2023. Several factors contributed to this improvement:

1. **Reduced Research and Development Expenses**: Athira's research and development expenses decreased to $70.7 million in 2024, down from $93.8 million in 2023. This reduction was primarily due to lower costs associated with the fosgonimeton program.
2. **Optimization of Clinical Programs**: The company strategically prioritized its clinical programs, focusing on ATH-1105 and potential partnerships while pausing further development of fosgonimeton. This shift likely resulted in cost savings and a more efficient use of resources.
3. **Improved Operational Efficiency**: Athira's operational efficiency improved, as evidenced by a decrease in net loss per share from continuing operations to $0.75 in Q3 2024, compared to $0.87 in the same period in 2023. This indicates better financial management and reduced operational costs.
4. **Financial Discipline**: The company's cash position at the end of 2024 was $51.3 million, a significant decrease from $147.4 million in 2023. This reduction in cash reserves may reflect a more disciplined approach to financial management, prioritizing spending on initiatives that align with strategic goals.

In summary, Athira's net profit improvement in 2024 can be attributed to reduced research and development expenses, optimized clinical programs, improved operational efficiency, and financial discipline. These factors collectively contributed to a narrower net loss for the company.