Avalo Therapeutics, Inc. (AVTX) has priced a $375 million public offering, a financing that positions the company as it advances multiple clinical and preclinical assets across immunology and inflammatory diseases.
The offering includes 250 million shares of common stock and pre-funded warrants, sold at a combined price of $1.50 per share, with gross proceeds expected to total $375 million before deducting underwriting discounts and is expected to close on or about May 7, 2026, subject to customary closing conditions.
According to Avalo, the capital will support ongoing clinical development, manufacturing activities, regulatory preparations, and general corporate purposes as the company expands its late-stage pipeline.
The financing follows Avalo's recently announced positive topline results from the Phase 2 LOTUS trial of Abdakibart (AVTX-009) in moderate to severe hidradenitis suppurativa (HS), where the study met its primary endpoint and demonstrated clinically meaningful improvements across key secondary measures.
In the LOTUS trial, Abdakibart achieved HiSCR75 response rates of 42.2% for the 150 mg dose and 42.9% for the 300 mg dose at Week 16 (p=0.018 and p=0.015 respectively), the highest rates reported in a trial of this size or larger.
Statistically significant improvements were also observed across key secondary endpoints, including HiSCR50, change in IHS4, and reduction in draining tunnel count.
Abdakibart was well tolerated, with adverse event rates similar to placebo and no unexpected safety findings.
Avalo noted that the data support further development of Abdakibart as a potential treatment option for patients with this chronic, painful inflammatory skin disease.Abdakibart is a monoclonal antibody targeting IL-1ß currently in Phase 2 for HS, with the next anticipated milestone being an end-of-Phase 2 meeting to define the registrational development path.
Avalo ended December 31, 2025, with approximately $98 million in cash, cash equivalents and short-term investments, providing expected operating runway into 2028.
AVTX has traded between $3.39 and $20.72 over the past year. The stock closed trading at $16.26, up 18%. In pre-market trading, the stock is at $21.30, up 31%.
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