Alterity locks in $20 million to advance Parkinson’s drug program

(ASX: ATH, NASDAQ: ATHE) has raised $20 million through a strategic placement to international and Australian professional investors, strengthening its balance sheet as it pushes forward with regulatory discussions for its lead drug candidate ATH434.

The placement was priced at 1.2 cents a share, a 7.7 percent discount to the last close before the trading halt and a 7.3 percent discount to the ten day volume weighted average. No options were issued, and the shares will rank equally with existing stock.

Chief executive David Stamler said the raise came in response to unsolicited interest from a healthcare focused institutional fund.

“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,” Stamler said. “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.”

ATH434 is Alterity’s lead asset and has shown clinically meaningful efficacy in Phase 2 trials for Multiple System Atrophy, a rare and aggressive Parkinsonian disorder. The drug has demonstrated both a favourable safety profile and signs of slowing disease progression.

The company intends to use the new funds for clinical and regulatory work with the FDA and other agencies, as well as manufacturing and preclinical studies. General working capital also features in the allocation.

The raise builds on a pivotal year for Alterity. In 2025 the company reported positive topline results from two Phase 2 trials of ATH434, with the data providing a platform for regulatory engagement and a potential pathway to approval.

Alterity is based in Melbourne and San Francisco and maintains a dual listing on the ASX and NASDAQ. Its broader drug discovery platform is designed to generate novel compounds that target the underlying pathology of neurodegenerative diseases such as Parkinson’s.

The $20 million raise gives Alterity breathing space to progress discussions with regulators and potential partners. The key question for investors will be whether the momentum from the Phase 2 results can be carried through to a Phase 3 program and ultimately to market approval.

For now, Alterity has cash in the bank, a clean capital structure, and growing institutional support — the building blocks for the next stage of its long running campaign to bring a new treatment option to patients living with Parkinsonian disorders.