Avalo Therapeutics, Inc. (AVTX)

Price$17.18Cached quoteAs of 2026-09-10 22:32 UTC

AI: Fair-priced

Price checkA large cash cushion offsets much of the market value, but dilution raises the true pipeline price.

At the latest quote, basic market capitalization is about $895 million. June-quarter cash, cash equivalents and investments totaled $472.2 million, so investors are paying roughly $420 million above liquid resources for the pipeline before adjusting for liabilities and dilution. That looks reasonable rather than obviously cheap because Avalo has no approved product and almost no recurring revenue. Outstanding convertible preferred stock, pre-funded warrants and options can expand the economic share count, so basic market capitalization understates the fully diluted valuation.

Big pictureAvalo is spending aggressively to reach Phase 3, with financing risk pushed several years out.

Avalo remains loss-making and cash-consuming: the company lost $56.0 million and used $37.7 million of operating cash in the first half of 2026. Research spending should rise as abdakibart enters Phase 3 and AVTX-010 advances. The counterweight is liquidity: cash and investments were $472.2 million at June 30, and management expects them to fund operations into 2029. Runway means how long existing resources can support operations before another financing; that estimate still depends on trial timing and spending.

Business strengthPositive Phase 2 efficacy and a strong balance sheet support development, but concentration remains extreme.

Abdakibart met the Phase 2 LOTUS primary endpoint at both doses and showed statistically significant benefits on key secondary measures, providing credible clinical proof of concept in hidradenitis suppurativa. Debt is minimal relative to liquid assets, which gives Avalo flexibility to fund larger trials. However, nearly all fundamental value still rests on unapproved IL-1β programs. Capital allocation has also been dilution-heavy: the May offering raised about $405 million net, while common shares increased sharply and additional preferred-stock equivalents and pre-funded warrants remain potential common shares.

What could change the storyPhase 3 design, enrollment, safety, financing discipline and new indications will drive the next rerating.

The bull case is that Phase 3 reproduces LOTUS efficacy with acceptable safety, monthly dosing proves competitive, AVTX-010 broadens the franchise and current cash reaches major readouts without another large raise. The bear case is failed or weaker late-stage efficacy, safety problems, enrollment delays, regulatory changes, stronger competing therapies, or faster cash burn. The clearest thesis-changing events are Phase 3 initiation in the first half of 2027, trial design details, patient enrollment pace, subsequent efficacy data, AVTX-010's planned IND filing, and future share issuance.

AI: News

Phase 3 path fundedSecond-quarter results confirmed a large liquidity cushion and a first-half 2027 Phase 3 start target.

On August 6, Avalo said it plans to initiate a registrational Phase 3 program for abdakibart in hidradenitis suppurativa during the first half of 2027. It reported $472.2 million of cash, cash equivalents and investments and said those resources should fund operations into 2029. That materially lowers near-term financing risk, although management also expects research and development spending to rise as the pivotal program advances.

Pipeline broadened with AVTX-010Avalo added a longer-acting IL-1β antibody and targets an IND submission in early 2027.

Avalo announced AVTX-010 on June 16 as a next-generation anti-IL-1β antibody engineered for a longer half-life, potentially allowing longer dosing intervals. The company plans an IND submission in the first half of 2027; an IND is the FDA application needed before starting human clinical testing in the United States. The asset diversifies the pipeline somewhat, but it remains preclinical and shares the same biological pathway as abdakibart.

LOTUS hit primary endpointAbdakibart beat placebo on the Phase 2 primary endpoint at both studied doses.

On May 5, Avalo reported positive topline results from the 253-patient LOTUS trial in moderate-to-severe hidradenitis suppurativa. Both abdakibart doses met the Week 16 HiSCR75 primary endpoint, with statistically significant benefit on several secondary measures and no unexpected safety findings reported. HiSCR75 is a stringent clinical response measure requiring major improvement in inflammatory lesions. The result supports Phase 3 advancement, but late-stage replication remains the central biotech risk.

Equity raise reset balance sheetA major follow-on offering secured development funding while sharply increasing the future share base.

After the LOTUS readout, Avalo completed a follow-on equity financing that generated about $405 million of net proceeds. The deal issued 22.9 million common shares after the underwriters' option was exercised, plus pre-funded warrants covering another 1.4 million shares. Pre-funded warrants are nearly fully paid rights to receive common stock, so they behave economically much like shares. The financing substantially extended runway but made per-share valuation and future dilution central to the thesis.

Loading local price history

Revenue

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Net income

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Free cash flow

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Total cash / debt

CashTotal debt

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013
Revenue	$59,000	$441,000	$1.9M	$18.1M	$5.4M	$6.7M	$6.8M	$7.0M	$27.8M	$1.2M	$0	—	—
Gross profit	$59,000	$807,000	$640,000	$14.6M	$3.9M	$6.4M	—	$3.8M	$27.2M	$1.2M	$0	—	—
Gross margin	100.00%	182.99%	33.26%	80.98%	72.38%	95.52%	—	53.61%	97.71%	100.00%	—	—	—
Research & development	$50.1M	$24.4M	$13.8M	$31.3M	$59.8M	$32.2M	$11.8M	$5.8M	$4.4M	$10.1M	$6.6M	$12.2M	$8.9M
Operating expenses	$73.0M	$69.0M	$29.3M	$55.5M	$87.5M	$79.5M	$22.9M	$42.4M	$13.9M	$17.2M	$11.0M	—	—
Operating income	−$72.9M	−$68.5M	−$27.4M	−$37.4M	−$82.1M	−$72.8M	−$16.1M	−$35.4M	$13.9M	−$16.1M	−$11.0M	−$17.1M	−$12.9M
Operating margin	−123,601.69%	−15,535.60%	−1,421.57%	−207.41%	−1,521.56%	−1,087.37%	−239.06%	−503.37%	49.94%	−1,394.64%	—	—	—
EBITDA	−$72.6M	−$68.3M	−$27.2M	−$37.3M	−$80.5M	−$71.0M	−$12.3M	−$30.8M	$14.3M	−$16.1M	−$11.0M	−$17.1M	−$12.9M
EBITDA margin	−123,018.64%	−15,497.28%	−1,413.36%	−206.49%	−1,490.87%	−1,059.86%	−181.53%	−438.56%	51.47%	−1,392.31%	—	—	—
Net income	−$78.3M	−$35.1M	−$31.5M	−$41.7M	−$84.4M	−$63.5M	−$16.1M	−$40.1M	$11.9M	−$16.5M	−$10.5M	−$16.1M	−$13.0M
Net profit margin	−132,642.37%	−7,965.76%	−1,639.50%	−230.78%	−1,563.10%	−947.90%	−238.10%	−569.87%	42.68%	−1,428.60%	—	—	—
Basic EPSper basic share	-$5.84	-$7,940.00	-$113.58	-$1,054.76	—	—	—	-$3,429.94	$1,200.48	-$5,345.00	-$13,462.53	-$15,663.41	-$59,223.69
Diluted EPSper diluted share	-$5.84	-$20.91	-$113.58	-$1,054.76	—	—	—	-$3,429.94	$1,200.48	-$5,345.00	-$13,462.53	-$15,663.41	-$59,223.69

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

9.64%of listed shares

FMR LLC5.1M shares · Jun 30, 2026

View holders

Top 20 reported holders of AVTX
Holder	% owned
FMR LLC	9.64%5.1M shares
BlackRock, Inc.	8.25%4.37M shares
Nantahala Capital Management, LLC	7.04%3.72M shares
Deep Track Capital, LP	6.82%3.61M shares
Caligan Partners LP	5.98%3.16M shares
TCG Crossover Management, LLC	5.70%3.02M shares
Affinity Asset Advisors, LLC	5.48%2.9M shares
STATE STREET CORP	5.46%2.89M shares
FARALLON CAPITAL MANAGEMENT, L.L.C.	4.72%2.5M shares
Point72 Asset Management, L.P.	4.51%2.39M shares
Avoro Capital Advisors LLC	4.41%2.33M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.28%2.26M shares
BVF INC/IL	3.92%2.08M shares
BANK OF AMERICA CORP /DE/	3.62%1.91M shares
ADAGE CAPITAL PARTNERS GP, L.L.C.	3.27%1.73M shares
Soleus Capital Management, L.P.	3.13%1.65M shares
BRAIDWELL LP	3.08%1.63M shares
PRICE T ROWE ASSOCIATES INC /MD/	2.48%1.31M shares
ALLIANCEBERNSTEIN L.P.	2.38%1.26M shares
UBS Group AG	2.29%1.21M shares

Percentages use 52.9M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys2$12.8K disclosed value

Sells (SEC code S)32$6.46M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 23, 2026Form 4 · 10b5-1	Doyle MittieChief Medical Officer	SellCommon Stock	1.4K	$18.00	$26.1K	51.8K
May 28, 2026Form 4 · 10b5-1	Doyle MittieChief Medical Officer	SellCommon Stock	679	$16.00	$10.9K	47.1K
May 15, 2026Form 4 · 10b5-1	Doyle MittieChief Medical Officer	SellCommon Stock	3.0K	$18.76	$56.3K	3.6K
May 7, 2026Form 4 · 10b5-1	Sullivan Christopher RyanChief Financial Officer	SellCommon Stock	18.6K	$24.12	$448.8K	423
May 6, 2026Form 4 · 10b5-1	Doyle MittieChief Medical Officer	SellCommon Stock	10.1K	$22.88	$230.1K	3.6K

Review ownership filings at SEC.gov ↗

Community posts

View community

It’s quiet here.

No posts about AVTX yet. Start the conversation.

Write the first post

Avalo Therapeutics, Inc. (AVTX)

Financial charts

Financial statements

Owners

Insider buys & sells

Community posts

It’s quiet here.