Alterity Therapeutics Secures A$20M to Advance ATH434 Development - Treating Neurodegenerative Diseases.
- Noel Ong
- Sep 23
- 7 min read
Announcement
Alterity Therapeutics Limited (ASX: ATH, NASDAQ: ATHE), a biotechnology company focused on disease-modifying treatments for neurodegenerative diseases, has successfully raised A$20.0 million through a strategic placement to international and Australian professional investors.
This development comes on the back of promising Phase 2 trial results for ATH434 in Multiple System Atrophy (MSA), strengthening the company’s position as it engages with the U.S. FDA and other regulators to chart the path forward.
Key Highlights - Beginning the process of Treating Neurodegenerative Diseases.
Capital Raising:
Alterity secured binding commitments of A$20.0 million via a placement priced at A$0.012 per share. The raise was anchored by a high-quality international healthcare fund. The issue price represents a 7.7% discount to the last ASX close and a 7.3% discount to the 10-day VWAP. No options were issued.
Balance Sheet Strength:
The placement provides Alterity with a robust cash position to advance regulatory discussions, non-clinical studies, chemical manufacturing and controls (CMC) work, and broader clinical development for ATH434.
Clinical Momentum:
In 2025, Alterity reported positive topline results from two Phase 2 clinical trials (ATH434-201 and ATH434-202), which showed clinically meaningful benefits and a favorable safety profile. These data underpin the company’s engagement with the FDA on next steps for ATH434 in MSA.
Strategic Positioning:
The funding round further diversifies Alterity’s institutional register and provides flexibility to explore potential strategic partnerships as development advances.
David Stamler, M.D., Chief Executive Officer of Alterity, commented:
"We are thankful for the continued interest from the investment community following the robust efficacy we demonstrated in our Phase 2 clinical trial in Multiple System Atrophy. We look forward to an exciting twelve months ahead as we actively pursue the path to approval,”
“We elected to execute this placement due to inbound interest from a high-quality international healthcare-focused fund that anchored the transaction. Based on the promising outlook for the company, we raised these funds at a modest discount with no options. The additional funding allows us to continue advancing our clinical and regulatory strategy for ATH434 with the US FDA and other agencies, while at the same time it strengthens our institutional register and balance sheet to best position the company for pursuing strategic partnerships.”
What is Multiple System Atrophy (MSA)?
Multiple system atrophy (MSA) is a progressive neurodegenerative disorder characterized by a combination of symptoms that affect both the central nervous system (which controls how a person moves) and the autonomic nervous system, which controls involuntary functions such as blood pressure or digestion. MSA was formerly known as Shy-Drager syndrome, olivopontocerebellar atrophy (OCPA), or striatonigral degeneration.
The symptoms of MSA reflect the progressive loss of function and death of different types of nerve cells in the brain and spinal cord. MSA is one of a family of neurological disorders known as an atypical parkinsonian disorder. The initial symptoms can be difficult to distinguish from those of Parkinson's disease, and can include:
Slowness of movement, tremor, or stiffness
Clumsiness or lack of coordination
Croaky, quivering voice
Fainting or lightheadedness
Bladder control problems
Symptoms tend to appear in a person's 50s and advance rapidly over the course of five to 10 years. A person with MSA will have increased difficulty with movement and eventually become bedridden. People with MSA often develop swallowing problems that can lead to pneumonia in the later stages of the disease.
There are two different types of MSA, which are categorized by the person’s most prominent symptoms when a doctor evaluates them:
Parkinsonian type MSA (MSA-P) has primary symptoms similar to Parkinson's disease (such as slowness of movement, stiffness, and tremor) along with problems with balance, coordination, and autonomic nervous system dysfunction (such as urinary problems, sweating abnormalities, and digestion difficulties).
Cerebellar type MSA (MSA-C) is associated with balance and coordination problems (ataxia), difficulty swallowing, speech problems or a quivering voice, and abnormal eye movements.
MSA tends to progress more rapidly than Parkinson's disease, and most people with MSA will require an aid for walking, such as a cane or walker, within a few years after symptoms begin.
About ATH434 and MSA
ATH434 is an oral iron chaperone, an oral therapeutic targeting pathological protein aggregation in neurodegenerative disorders. It acts as an iron chaperone, redistributing excess iron in the brain, one of the key pathological mechanisms in MSA (Figure 1).
Figure 1: Excess labile iron and alpha-synuclein aggregation driving MSA pathology (Source: Alterity Phase 2 Presentation at MSA Symposium 2025).
MSA is a rapidly progressing and rare Parkinsonian disorder with no approved disease-modifying therapies. It affects the autonomic nervous system and motor control, with hallmark α-synuclein protein accumulation in glial cells.
ATH434 has received:
Fast Track Designation (FDA)
Orphan Drug Designation (FDA & European Commission)
Alterity continues its commitment to progressing ATH434 and alleviating the burden of MSA, with ongoing Phase 2 trials and additional pipeline development in related neurodegenerative conditions.
About Alterity Therapeutics
Headquartered in Melbourne and San Francisco, Alterity is a clinical-stage biotech dedicated to creating an alternative future for individuals living with neurodegenerative diseases. The company’s lead asset, ATH434, has shown efficacy in MSA—a rare, rapidly progressive Parkinsonian disorder with high unmet need.
Alongside ATH434, Alterity maintains a drug discovery platform capable of generating novel compounds targeting the pathology of neurological conditions.
Next Steps
Engage with the U.S. FDA and other agencies to discuss regulatory pathways for ATH434.
Advance CMC activities and non-clinical studies in preparation for future trials.
Continue to position for strategic collaborations with global healthcare partners.
Samso Concluding Comments
The significance of this announcement is straightforward: Alterity Therapeutics has strengthened its position at a critical juncture. Positive Phase 2 trial outcomes for ATH434 have provided a strong scientific base, and the A$20 million raise now ensures the company has the financial capacity to maintain momentum.
The absence of options and only a modest discount in the placement reflects a degree of investor confidence that is often rare in the biotech sector. It also signals support from specialist healthcare funds that understand the long journey from promising clinical data to regulatory approval.
For investors, the key focus should be on Alterity’s next engagements with the FDA and other regulators. These discussions will shape the timeline and structure of the company’s pathway to market. At the same time, the bolstered balance sheet opens the door for potential strategic partnerships—an important step for any company operating in the capital-intensive space of drug development.
Treating Neurodegenerative Diseases is a very important and lucrative business, so getting this right could propel Alterity Therapeutics past its current market capitalisation of AUD119M. This raise is a good confidence boost to potential investors, and it does sound like there could be positive news on the way. Sometimes, the capital market has a simple way of leading investor confidence with a good decent capital raising :-)
As always, investors need to conduct their own research, understand the risks inherent in clinical-stage biotech, and appreciate the long-term nature of value creation in this sector.
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