Alterity Therapeutics (ASX:ATH) has secured $20 million in new funding to accelerate the development of its lead drug candidate ATH434, a potential disease-modifying therapy for multiple system atrophy (MSA), a rare and devastating neurodegenerative disorder.
The capital raising, conducted through a placement of fully paid ordinary shares to Australian and international professional investors, was anchored by a major international healthcare-focused fund.
Shares were issued at $0.012 each, representing a modest discount of 7.7 per cent to Alterity’s last closing price and 7.3 per cent to the 10-day volume-weighted average. No options were attached to the deal, leaving the company’s capital structure intact.
Chief Executive Officer Dr David Stamler said the placement reflected growing investor confidence in Alterity following positive Phase 2 trial results. “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,” he said.
Stamler added that the decision to raise capital was driven by unsolicited interest from a high-quality international fund, underscoring the company’s strengthening profile. “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.”
The proceeds will fund non-clinical studies, chemical manufacturing and control activities, and ongoing clinical and regulatory engagement for ATH434, as well as general working capital. The company said it is prioritising discussions with the US Food and Drug Administration to define the pathway toward potential approval.
In 2025, Alterity reported encouraging topline data from two Phase 2 trials, ATH434-201 and ATH434-202, showing clinically meaningful benefits and a favourable safety profile in patients with MSA. These results have positioned the company to transition from mid-stage trials into later regulatory-driven development, with ATH434 seen as a potential first-in-class therapy in an area of high unmet medical need.
MST Financial Services acted as the sole manager for the placement. The new shares will rank equally with Alterity’s existing fully paid ordinary shares.