Alterity Therapeutics Faces ASX Scrutiny After Multiple Disclosure Errors

• ASX questions ATH’s classification of announcements as market sensitive
• ATH admits errors stemmed from internal miscommunication and governance lapses
• Disclosed data previously released or deemed not materially price sensitive
• ASX raises concerns about potential ramping conduct; ATH denies intent
• ATH commits to policy overhaul and enhanced training on continuous disclosure

Background to the ASX Inquiry

Alterity Therapeutics Limited (ASX, ATH), a biotechnology company focused on neurodegenerative diseases, has come under regulatory scrutiny following a series of ASX query letters issued in late July 2025. The ASX questioned ATH’s handling of disclosures related to its novel MRI endpoint technology and Phase 2 clinical trial data, specifically the company’s repeated classification of these announcements as market sensitive.

The initial trigger was ATH’s 24 July announcement about the publication of a peer-reviewed article on its MSA Atrophy Index (MSA-AI) technology, which the company had erroneously marked as price sensitive. This followed earlier disclosures in April and November 2024 and May 2025, which had already shared similar data with the market.

ATH’s Response and Admission of Errors

In its 28 July response, ATH acknowledged that designating the July announcement as market sensitive was an isolated error caused by miscommunication between internal stakeholders and an external investor relations provider. The company emphasized that the information had been previously disclosed and did not contain new material data that would reasonably affect its share price.

ATH also addressed concerns about its April 2025 Phase 2 clinical data announcements, admitting these too were mistakenly marked as price sensitive despite containing incremental but not materially different data from prior releases. The company denied any intent to engage in ramping conduct, attributing the misclassifications to a misunderstanding of the threshold for material price sensitivity, especially given its US-based management and investor relations team.

ASX’s Concerns and Governance Implications

The ASX’s follow-up letter on 30 July highlighted the risk that ATH’s repeated misclassification of announcements could constitute ramping conduct; attempts to artificially inflate the share price through selective disclosure. The regulator pointed to the timing and nature of disclosures, noting that some information had been presented at international conferences months before being formally announced on the ASX platform.

ASX also questioned the validity of ATH’s cleansing notice issued in April 2025, which stated there was no undisclosed material information, despite subsequent announcements revealing additional data. The regulator’s detailed queries underscored the importance of timely, accurate, and consistent disclosure under Listing Rule 3.1.

Commitments to Policy Reform and Training

In its 3 August letter, ATH outlined proposed changes to its continuous disclosure policies. These include requiring the CEO or Board to review all ASX announcements for material price sensitivity before release, explicit instructions on marking announcements as price sensitive, and enhanced training for senior management on ASX disclosure obligations. The company reaffirmed its compliance with Listing Rule 3.1 and confirmed that all responses had been authorized by its Board.

While ATH maintains that its disclosures were motivated by good governance and transparency rather than market manipulation, the episode highlights the challenges biotech companies face in navigating complex regulatory frameworks across jurisdictions.

Market and Investor Implications

The market reaction to ATH’s July announcement was modest, with a small share price uptick consistent with normal volatility for a low-priced stock. However, the ASX’s intervention signals heightened regulatory vigilance over disclosure practices, especially for companies with active clinical programs and investor interest. Investors will be watching closely to see if ATH’s governance reforms translate into more disciplined and timely market communications going forward.

Bottom Line?

Alterity’s disclosure missteps serve as a cautionary tale on the fine line between transparency and regulatory compliance in biotech communications.

Questions in the middle?

• Will ATH’s governance reforms prevent future disclosure errors and ASX scrutiny?
• Could ASX impose penalties if further ramping conduct is suspected?
• How will investors interpret ATH’s repeated misclassification of material information?