Fosgonimeton, a drug for Alzheimer's disease, failed in clinical trials, and Athira Pharma (ATHA.US) plunged 72% after hours

On Tuesday, local time, Athira Pharma (ATHA.US) announced disappointing news: its candidate drug fosgonimeton failed to meet the primary endpoint and key secondary endpoints in its 2/3 phase clinical trial for Alzheimer's disease. The result led to a 72% drop in the company's stock price in after-hours trading.

The study, named LIFT-AD, aimed to evaluate fosgonimeton as a potential treatment for mild to moderate Alzheimer's disease. Despite the disappointing results, Dr. Javier San Martin, Athira's chief medical officer, expressed optimism for the future in a statement. He noted that the placebo group in the trial did not show a decline in clinical symptoms, and the shorter duration of the study may have limited its ability to fully demonstrate fosgonimeton's therapeutic potential.

Dr. San Martin further explained: "Nevertheless, we still believe that the positive modulation of the HGF (hepatocyte growth factor) pathway has the potential to improve neuronal health markers and may have a positive impact on slowing the disease process." His words conveyed the company's confidence in the drug's potential, despite the current trial results not supporting its effectiveness as a treatment for Alzheimer's disease.