AVTX · Avalo Therapeutics, Inc.

Avalo Therapeutics announced a significantly upsized public offering through an underwriting agreement dated May 5, 2026, with Leerink Partners LLC, TD Securities (USA) LLC, and BofA Securities, Inc. as representatives. The company committed to selling 19,730,000 shares of common stock at a public price of $17.75 per share and pre-funded warrants to purchase 1,400,000 shares at $17.749 each, reflecting the share price less the nominal $0.001 exercise price. Critically, the underwriters immediately exercised their full 30-day option for an additional 3,169,500 shares on May 6, 2026, bringing total shares offered to 22,899,500 plus warrants. This full exercise signals strong institutional demand and market confidence in Avalo's clinical pipeline. Net proceeds are estimated at $405 million after underwriting discounts, commissions, and expenses, representing transformative capital for the biotech. Prior to the offering, Avalo reported $82 million in cash, cash equivalents, and short-term investments as of March 31, 2026 (preliminary, unaudited), with 29,326,347 shares outstanding as of May 4. Management explicitly plans to deploy proceeds, alongside existing liquidity, to advance abdakibart through Phase 3 topline data readout, extending cash runway into 2029 and materially de-risking execution. Pre-funded warrants include standard protections like a 19.99% beneficial ownership cap (initially set at 4.99% or 9.99% by purchasers) and cashless exercise provisions. The offering, registered under effective S-3 (File No. 333-292614), closes May 7 subject to customary conditions, with legal opinions from Goodwin Procter confirming validity. This capital raise positions Avalo to fully resource late-stage development without near-term dilution pressure.