Athira Pharma stock loses two-thirds of its value after study of Alzheimer’s treatment misses primary endpoint

Shares of Athira Pharma Inc. apha plummeted 66.9% toward a record low in active afternoon trading Wednesday, enough to make them the biggest decliners trading on major market indexes, after the biopharmaceutical company said a Phase 2 study of its Alzheimer’s treatment failed to meet the primary endpoint. Trading volume spiked up to 18.1 million shares, compared with the full-day average over the past 30 days of about 246,500 shares. The company said the primary endpoint of a change in biomarker event-related-potential (ERP) P300 latency “was not statistically significant” for the full study population. However, Athira said a pre-specified subgroup analysis indicated a potential diminished effect of fosgonimeton when given in combination with standard-of-care AchEls. Fosgonimeton is designed to help promote brain health and function. The stock, which was headed for the biggest one-day selloff since it went public in September 2020, has plunged 78.5% year to date, while the iShares Biotechnology ETF IBB, +1.23% has slid 25.2% and the S&P 500 SPX, -0.13% has dropped 20.5%.