Former Athira CEO on her controversial exit: 'I was relieved that it came to an end'

Leen Kawas doesn’t worry about what she can’t control.

She was a rising star in the biotech scene in 2014 when she became CEO of what was then known as M3 Biotechnology. Kawas helped transform the Bothell-based company from a research-born startup to a publicly traded biotech conducting clinical trials on drugs aimed at Alzheimer’s and Parkinson’s dementia. 

In June 2021, however, Athira Pharma Inc. (Nasdaq: ATHA) placed Kawas on temporary leave due to altered images in her doctoral work at Washington State University, where she received a doctorate in molecular pharmacology in 2011. Although the research team had addressed those issues in 2015, Athira announced Kawas’ resignation in October 2021.

Kawas, who had a baby while she was on leave from the company in August 2021, isn't dwelling on the past.

“I don’t get stuck. I move forward. When I look back at Athira, I remember the good days,” Kawas said. “If I look back and trivialize the whole experience with one event, it’s kind of sad.”

In March, Kawas and Athira investor Richard Kayne launched Propel Bio Partners, an investment firm focused on life sciences. The firm, Kawas says, gives her an outlet to have a broader impact on the biotech field. 

The Business Journal sat down with Kawas to talk about her departure from Athira, how she coped and how she is moving forward in Los Angeles with Propel. (Listen to the full interview in the podcast below.)

How are things going at Propel?

It's very exciting for me to have the opportunity to start Propel. I always wanted to have a bigger impact on our industry as well as the diversity aspect of leadership in our industry. Things have been going really well. We've been making investments in companies. A lot of great founders are out there.

What made you decide to launch an investment firm after resigning from Athira?

It took me five days to think about it. When Ric (Kayne) reached out to me, he actually called me immediately after the announcement that I resigned at Athira. He was like, “What are you going to do next? I would love to do something with you.”... That’s within, I’m not joking, 30 minutes from the announcement. I remember walking down and telling my husband, “I think there’s a new opportunity.”

You resigned from Athira, and within 30 minutes Ric Kayne is on the phone. Now you are running an investment firm with him. Walk me through that process.

I had a lot of people calling me up after I resigned. I actually got two other job offers to be CEO of a company to take them public. … I told (Kayne) we have to talk about it, are you in the U.S.? He’s all over the world. He’s like “Yeah, I’m in the U.S. next Friday in LA, can you come down and see me?” I said yeah.

What was the meeting like?

The first thing he said was, “I don’t agree with everything that happened, but let’s talk about the future.” I said, “OK, explain to me what are you thinking about?” Like my typical self, I started asking and trying to find holes in everything. I spent an hour just asking him questions, and toward the first hour, he was like, “Stop quizzing me because I’m thinking about these things on the fly. We’re going to figure it out together.” I said I need to understand more before I take the job. He said, “You’re not taking a job. You’re a partner.” That was very interesting for me.

You took a similarly big risk when starting with M3/Athira, no?

I had a job at the University of Pittsburgh. I was going to go to that job, and then (Athira co-founder and long-time WSU researcher) Joe (Harding) said, “No, I want you to stay, we are starting this company. Can you help us with the company?” I said, “I have a stable job.” I had my excel sheet: where I’m going to end up, when I’m going to have my first child, where I’m going to get married. Nothing happened in that timeline.

What did Joe Harding say? 

“You have to stay. I don’t see you going through the normal academia timeline or any type of normal job going into the industry. You need to do something unique.” So, I emailed the people in Pittsburgh and said I have this opportunity. ... They said to start the company. If it doesn’t work out in a year, come back.

It must have been hard to fundraise and get a biotech company off the ground.

It takes a lot of grit and a lot of resilience. After my first child, I went back to the office within a week. When I got married, the morning of our wedding day, I had a 4 a.m. call with manufacturing in India. My husband said, “If you take the call, we’re done.” I took it. Athira is my first baby.

Did you ever tell your husband about the call? 

I did, on our honeymoon. We were on an island, so he was stuck.

TIMELINE

A lot has been said and written about your departure from Athira. What is your side of the story with the altered images?

This topic came up in 2015 when Joe Harding, also my Ph.D. adviser, was on the (Athira) board as well. The most ethical and highest integrity thing is at that point, I directly said yes. I understand now that it’s not OK. What can I do? The underlying science is not impacted. … I was a student, and I think students are allowed to make mistakes and learn from them and grow. In 2015, the board was aware of it. I acknowledged it. How can we handle it? I think Joe Harding handled it in a scientific way. He had other people repeat the experiments, which confirmed the underlying science.

If this was handled in 2015, why did it resurface six years later?

I don’t worry about things that I can’t control. It came up, and it’s over.

You were put on leave while you had a new baby on the way. How did you cope?

I got a therapist who specializes in career crises. Shout out to her. She explained everything to me. She has done this. Mental health is very important. ... I was exercising. Shout out to my trainer, Travis. He is a Coug also, so we had that to talk about. The baby. I cooked. … I cleaned the house 200 times. I took on gardening. I read a lot. And I was available to the company.

When did you realize you had to resign, and how did you find out?

From my lawyers. I was relieved that it came to an end. Four months is a long period of time. Especially for someone like me. I need something to keep going. ... The one thing that I hoped from the company is they were more open to feedback from me. I was in the thick of it around the design of the clinical trials, including the latest announcement.

It must have been a relief to at least know the decision, even if it wasn’t the decision you wanted.

It was. The one thing is they had all the information they needed in 2015 and on Day 1. That was the one thing. Why did it take four months (from the temporary leave to resignation)?

You live in LA now. Why make the move?

It became very clear to (me and my husband) that for my next adventure, LA makes a lot of sense. The proximity to (Kayne). The proximity to a lot of investors and a new, up-and-coming market for life sciences. The proximity to San Diego. It’s a very easy trip to San Francisco. … I love Seattle. I love Washington. But the rain. Going out with two children in the rain is a lot of work.

Would you ever lead a biotech as CEO again?

Never say never. Maybe if it’s the right opportunity and if it’s the right exciting thing that I feel deeply committed to, for sure. But now, I’m 100% Propel.

This interview has been edited for length and clarity.