Bothell-based biotech Athira Pharma (Nasdaq: ATHA) has officially moved on from Leen Kawas, the company's former CEO who was placed on temporary leave in June pending a review of her doctoral research while at Washington State University.
The embattled biotech announced Kawas was resigning from both her roles as CEO and president, as well as from her position on the company's board of directors. Mark Litton, who had been the chief operating officer before taking over day-to-day leadership when Kawas was placed on leave, is the company's new CEO.
“The company and Dr. Kawas agreed it is in Athira’s best interest to enter this critical next chapter under new leadership. Dr. Kawas’ actions at Washington State University took place many years ago and did not involve ATH-1017, Athira’s lead development candidate,” Kelly Romano, chair of Athira's board, said in a news release. “We thank Dr. Kawas for her unwavering focus seeking to make a meaningful difference for Alzheimer’s patients and their caregivers.”
Since Kawas was placed on leave June 17, Athira's stock has tumbled from $18.24 to $9.63 at market's close Thursday. The company is also facing multiple class action lawsuits on behalf of investors.
In a release announcing Kawas' resignation, Athira said the investigation, conducted by an independent special committee, found Kawas had altered images in her doctoral dissertation and at least four papers she co-authored while at WSU that were published between 2011 and 2014. Kawas received a doctorate in molecular pharmacology from WSU in 2011.
“The goal of Athira has always been developing therapies that can reverse the effects of neurodegenerative diseases,” Kawas said in the release. “This talented team has accomplished significant milestones on the path to realizing this goal, and I remain confident in the company’s ability to realize its mission and bring the company’s lead development candidates to market.”
Concerns around Kawas' work surfaced as early as 2016 on PubPeer, a site that allows users to comment on academic articles. Athira, which was previously called M3 Biotechnology, has also been accused of using a doctor's credentials without his knowledge in a 2014 grant application.
Athira's lead drug, ATH-1017, is aimed at treating Parkinson's and Alzheimer's dementia. The drug is currently in Phase 2 clinical trials. Athira went public through a $204 million IPO in 2020. Rachel Lenington, previously Athira's chief technology officer, will take over as the company's COO.
WSU is also reviewing Kawas' research.
