Athira Pharma Inc (NASDAQ:ATHA) shares soared 73.4% in premarket trading on Thursday after the clinical-stage biopharmaceutical company announced it has obtained worldwide rights to develop and commercialize lasofoxifene, a late-stage breast cancer drug currently being evaluated in Phase 3 trials.
Athira has entered into an exclusive global licensing agreement with Sermonix Pharmaceuticals for the selective estrogen receptor modulator (SERM). The therapy is being developed to treat metastatic breast cancer in patients with ESR1 mutations who have already progressed on existing standard-of-care treatments. The ongoing ELAINE-3 Phase 3 study is now more than halfway enrolled, with topline data expected around mid-2027.
To fund development of the newly acquired program, Athira also unveiled a $90 million private placement financing, co-led by Commodore Capital, Perceptive Advisors and TCGX. The deal includes warrants that, if exercised, could generate up to an additional $146 million in proceeds, extending the company’s cash runway into 2028.
“This agreement for the rights to the Phase 3 lasofoxifene program for metastatic breast cancer is a significant step in building a pipeline with the potential to change lives and create enduring value,” said Mark Litton, President and CEO of Athira.
Lasofoxifene previously delivered encouraging results in the Phase 2 ELAINE-2 trial, where it achieved a median progression-free survival of 13 months in heavily pre-treated patients. ESR1 mutations are estimated to develop in roughly 40% of breast cancer patients after progression on standard therapies.
Under the terms of the agreement, Athira will issue Sermonix a pre-funded warrant to purchase approximately 5.5 million shares of common stock. In addition, Sermonix is eligible to receive up to $100 million in milestone payments tied to commercialization and sales benchmarks, along with tiered royalties ranging from the sub-single-digit to low-single-digit percentages.
The private placement is expected to close on or around December 23, subject to customary closing conditions.