Sole Placement Agent on Avalo Therapeutics' Private Placement Financing

Avalo Therapeutics, Inc. (Nasdaq: AVTX) announced it has acquired a Phase 2-ready anti-IL-1β mAb through the acquisition of privately held AlmataBio, Inc. Concurrent with the acquisition, Avalo entered into a definitive agreement for the sale of convertible preferred stock and warrants to purchase common stock in a private placement led by Commodore Capital and TCGX, with participation from BVF Partners, Deep Track Capital, OrbiMed, Petrichor, and RA Capital Management. The private placement will provide up to $185 million in gross proceeds, including an initial gross upfront investment of $115.6 million and warrants to purchase Avalo common stock for an aggregate exercise price of $69.4 million. After deducting estimated transaction costs from both the private placement financing and the acquisition of AlmataBio, Avalo expects net upfront proceeds to be approximately $105 million.

Avalo intends to pursue the development of the newly acquired mAb, AVTX-009, for the treatment of hidradenitis suppurativa (HS). Topline results from a planned Phase 2 trial in HS are expected in 2026 and the upfront funding is expected to fund operations through this data readout and into 2027. In addition to HS, Avalo intends to develop AVTX-009 in at least one other chronic inflammatory indication.