The foundation of Athira Pharma began while Leen Kawas was earning her Ph.D. in molecular pharmacology at Washington State University nearly a decade ago.
Fast forward to today and the Seattle biotech startup is inching closer to FDA approval for its drug therapy that can restore brain function and help people suffering from brain diseases such as Alzheimer’s and Parkinson’s.
Investors are betting big on the company, which announced a giant $85 million Series B investment round Thursday to help fuel late-stage development of its lead therapeutic candidate called NDX-1017.
The drug could halt or reverse the nerve damage that causes Alzheimer’s disease and other illnesses including Parkinson’s and ALS, or Lou Gehrig’s Disease. It uses regenerative technology that rebuilds connections between neurons.
Athira in December presented what it described as positive initial results from a clinical trial that included patients with Alzheimer’s disease.
Kawas said preliminary data shows promising evidence that NDX-1017 can help not only slow down disease but also improve brain function. It can also aid Alzheimer’s patients at both early and late stages of the disease.
“The potential of the technology is huge,” said Kawas, who co-founded Athira with WSU researchers Joseph Harding and Jay Wright.
Depending on the development and approval process, Kawas said the drug could come to market within 2-to-3 years.
More than 5 million Americans have Alzheimer’s, according to the Alzheimer’s Association, with that number projected to rise to nearly 14 million by 2050. The disease is the sixth-leading cause of death in the U.S.
“Almost everyone I know has been impacted directly or indirectly by Alzheimer’s or other brain diseases,” Kawas said. “We are excited to potentially be part of the solution.”
Many big pharma companies have pulled back on neuroscience-related research and development, BioPharma Dive reported in January, though venture capital funding to the sector came in at $1.5 billion in 2018.
Kawas and Athira COO Mark Litton acknowledged the unusually large size of the Series B round, particularly for a 17-person company trying to develop therapies for brain disease. “It really validates what we have done,” said Litton, a veteran biotech exec who previously co-founded Alder Biopharmaceuticals.
Kawas said the COVID-19 pandemic has not impacted Athira, which avoided layoffs and is hiring.
The company, previously known as M3 Biotechnology, is committed to growing in Seattle as part of the local biotech and life sciences ecosystem, Kawas said. Some of the startup’s early investors include Washington state’s Life Sciences Discovery Fund; the Washington Research Foundation; and Seattle-based the W Fund. The Michael J. Fox Foundation also gave Athira an early grant.
Other fast-growing Seattle-area biotech startups include Nautilus Biotechnology, which just raised a $76 million Series B round to study the human proteome, Silverback Therapeutics, Phase Genomics, Good Therapeutics, Blaze Bioscience, and more.
Kawas holds a doctor of pharmacy degree from the University of Jordan. She won Startup CEO of the Year honors at the GeekWire Awards last year.
Perceptive Advisors led the Series B round, which included participation from RTW Investments, Viking Global Investors, Venrock Healthcare Capital Partners, Franklin Templeton, ROck Springs Capital, LifeSci Venture Partners, Surveyor Capital, Highside Capital Management, Logos Capital, Sofinnova Investments, Avidity Partners, funds managed by Janus Henderson Investors, Sahsen Ventures, and Rick and Suzanne Kayne.
Joseph Edelman, CEO of Perceptive Advisors, will join the company’s board as a result of the new investment. Total funding to date is north of $100 million.
