AVTX · Avalo Therapeutics, Inc.

Avalo Therapeutics reported its first quarter 2026 financial results, which were overshadowed by the positive Phase 2 LOTUS trial data for abdakibart in hidradenitis suppurativa (HS) announced on May 5, 2026. The trial met its primary endpoint with a 42.5% combined HiSCR75 response rate versus 25.6% for placebo (p=0.004), representing the highest absolute improvement reported in similarly sized HS trials. This success, combined with a $431.3 million gross public offering completed on May 7, 2026, positions the company to advance abdakibart into a registrational Phase 3 program. Financially, the company ended Q1 2026 with $82.0 million in cash, equivalents, and short-term investments, which, together with the subsequent net proceeds of approximately $405.0 million, is expected to fund operations into 2029. Operating expenses increased to $20.9 million from $14.7 million in the prior year, driven by a $4.9 million rise in R&D costs related to the LOTUS trial and a $1.3 million increase in G&A expenses from headcount additions and stock-based compensation. Net loss widened to $19.6 million ($0.98 per share) from $13.1 million ($1.25 per share) in Q1 2025. Management emphasized the transformative potential of abdakibart and the company's focus on delivering a monthly dosing regimen for HS patients.