Leen Kawas, former CEO of Bothell-based biotech Athira Pharma Inc. (Nasdaq: ATHA), is launching an equity investment firm focused on life sciences called Propel Bio Partners.
The new venture comes just five months after Kawas left Athira, including her position on the company's board, following controversy around her doctoral research at Washington State University. Kawas co-founded Propel with Richard Kayne, founder and co-chair of Kayne Anderson Capital Advisors and an Athira investor.
"I am looking forward to providing promising and passionate entrepreneurs the same opportunity that Ric Kayne and others gave to me when I started Athira," Kawas said in a news release. "Propel brings real experience in supporting founders and management teams. The companies we support can access our team's deep expertise to help them navigate the challenges of bringing life-saving technologies to market."
In the release, the firm said it will support "companies focused on changing standard of care and improving quality of life." Securities and Exchange Commission documents show the firm's total offering amount as $150 million. Dasom Yoo, a former business development manager at Fred Hutchinson Cancer Research Center, is joining the firm as a senior associate. Propel is based in both Seattle and Los Angeles.
The firm also has eight advisory board members, including Carol Criner, vice president of strategic accounts at HCL Technologies. According to her LinkedIn page, Criner was on the advisory board at Athira from 2014 to 2021. In a blog post from consulting firm Mike Flynn & Associates shortly after Kawas resigned from Athira, Flynn wrote that Criner was the first female investor in Athira, which was originally called M3 Biotechnology.
"Her story is incredible, and I obviously hoped she would remain as CEO,” Criner is quoted as saying in the blog post. “There’s a reason the windshield is larger than the rearview mirror. Leen will accomplish her future goals.”
The review of Kawas' research, 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 published between 2011 and 2014. She received her doctorate in molecular pharmacology from WSU in 2011. Concerns around her work first surfaced as early as 2016 on PubPeer, a site that allows users to comment on academic articles.
Kawas was first placed on leave last June, and the company currently faces multiple class-action lawsuits on behalf of investors.
Athira was founded in 2011, and the company went public through a $204 million IPO in 2020. The company's lead drug, ATH-1017, is aimed at treating Alzheimer's and Parkinson's dementia.
Kayne participated in Athira's $85 million Series B in June of 2020. In a release announcing the raise, the company noted he was an existing investor.
"I am proud to be partnering with Dr. Leen Kawas in this important new venture," Kayne said in the release announcing Propel. "Leen is a visionary entrepreneur with a unique blend of drive, intelligence and demonstrated business acumen."
Editor's note: Mike Flynn was the publisher of the Puget Sound Business Journal from 1981-2006.
