olivLaw · US equity research
Avalo Therapeutics, Inc. AVTX
Pharmaceutical Preparations · SIC 2834 · Vertical: Pharmaceutical Preparations (SIC 2834)
Avalo Therapeutics is a clinical stage biotechnology company focused on IL-1β based treatments for immune-mediated inflammatory diseases, led by abdakibart in hidradenitis suppurativa. It matters now because positive Phase 2 LOTUS data in the second quarter of 2026 could support a move into Phase 3, with cash, cash equivalents and investments of million USD as of June 30, 2026.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 05 Nov 2026, Avalo Therapeutics, Inc. (AVTX) stock was 6.63 USD (−6.22% on the day), with market capitalisation 383.4 m USD, beta 0.97, 52-week range 6.63–22.87 USD. Latest reported quarter (Q3 2026): net income of -18.9 m USD, diluted EPS -0.34 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 21.8
- oversold (≤ 30)
- Bollinger (20, 2)
- 4.16 – 14.65
- in the lower half of the band · %B 0.24 · band width 111.5%
- SMA 50 / 200
- 13.74 / 15.87
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -2.10 / -2.10
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −51.2% | −5.9% | −45.3 pp | — |
| 3 months | −64.5% | −4.6% | −59.9 pp | — |
| 6 months | −71.0% | +0.2% | −71.2 pp | — |
| Year to date | −63.5% | +7.4% | −70.9 pp | — |
| 1 year | −59.7% | +8.2% | −67.9 pp | +13.7% |
| 3 years | −72.6% | +68.4% | −141.1 pp | +15.7% |
| 5 years | −99.9% | +56.5% | −156.4 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 192.0 k | — | — | 0 | 59.0 k | — | — | — |
| Cost of revenue | — | — | 0 | — | — | — | — | — |
| Operating income | -13.3 m | -14.7 m | -19.3 m | -19.2 m | -19.7 m | -20.9 m | -31.5 m | -23.4 m |
| Depreciation & amortisation | 68.0 k | 135.0 k | 134.0 k ≈ | 59.0 k ≈ | 16.0 k | 17.0 k | 17.0 k ≈ | 18.0 k ≈ |
| Pre-tax income | -35.2 m | -13.1 m | -20.7 m | -30.6 m | -13.6 m | -19.6 m | -36.3 m | -18.9 m |
| Income tax | 114.0 k | 8.0 k | 16.0 k | 11.0 k | 130.0 k | 12.0 k | 18.0 k | 7.0 k |
| Net income | -35.3 m | -13.1 m | -20.8 m | -30.6 m | -13.7 m | -19.6 m | -36.4 m | -18.9 m |
| Diluted EPS | -3.42 ≈ | -1.25 | -1.92 | -2.19 | -0.75 ≈ | -0.98 | -0.83 | -0.34 |
| Operating cash flow | -15.0 m | -9.5 m | -11.4 m ≈ | -16.4 m ≈ | -14.2 m | -17.7 m | -20.0 m ≈ | -11.5 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | ⚠ 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 7.0 m | 6.8 m | 6.7 m | 5.4 m | 18.1 m | 1.9 m | 441.0 k | 59.0 k |
| Revenue YoY | — | −4.0% | −0.8% | −19.4% | +234.4% | −89.3% | −77.1% | −86.6% |
| Net income | -40.1 m | -16.1 m | -63.5 m | -84.4 m | -41.7 m | -31.5 m | -35.1 m | -78.3 m |
| Net income YoY | — | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS | -1.20 | unavailable | unavailable | unavailable | -1,063.00 | -113.58 | -20.91 | -5.84 |
| Diluted EPS YoY | — | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| net % | -569.9% | -238.1% | -947.9% | -1,563.1% | -230.8% | -1,639.5% | -7,965.8% | -132,642.4% |
| Free cash flow | -3.7 m | -19.4 m | -40.6 m | -71.0 m | -26.8 m | unavailable | unavailable | unavailable |
The series breaks before 2018: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.
Reported results vs expectations
Loading…
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 15.9 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 83.0 m USD
- Total assets
- 116.5 m USD
- Debt / equity
- unavailable
- Current ratio
- 8.14x
- ROE
- -72.4%
- ROA
- -58.6%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 6.7 m | 5.4 m | 18.1 m | 1.9 m | 441.0 k | 59.0 k | SEC (XBRL)· 23 Mar 2026verified |
| Cost of revenue | 300.0 k | 1.5 m | 3.4 m | 1.3 m | — | — | SEC (XBRL)· 29 Mar 2024verified |
| Gross profit | 6.4 m ≈ | 3.9 m ≈ | 14.6 m ≈ | 640.0 k ≈ | — | — | SEC (XBRL)· 29 Mar 2024derived |
| SG&A | — | — | 20.7 m | 10.3 m | — | — | SEC (XBRL)· 29 Mar 2024verified |
| Operating income | -72.8 m | -82.1 m | -37.4 m | -27.4 m | -68.5 m | -72.9 m | SEC (XBRL)· 23 Mar 2026verified |
| Depreciation & amortisation | 1.8 m | 1.7 m | 166.0 k | 158.0 k | 169.0 k | 344.0 k | SEC (XBRL)· 23 Mar 2026verified |
| EBITDA | -71.0 m ≈ | -80.5 m ≈ | -37.3 m ≈ | -27.2 m ≈ | -68.3 m ≈ | -72.6 m ≈ | SEC (XBRL)· 23 Mar 2026derived |
| Pre-tax income | — | — | -41.6 m | -31.5 m | -35.0 m | -78.1 m | SEC (XBRL)· 23 Mar 2026verified |
| Income tax | -2.8 m | -196.0 k | 28.0 k | 14.0 k | 114.0 k | 165.0 k | SEC (XBRL)· 23 Mar 2026verified |
| Net income | -63.5 m | -84.4 m | -41.7 m | -31.5 m | -35.1 m | -78.3 m | SEC (XBRL)· 23 Mar 2026verified |
| Diluted EPS | — | — | -1,063.00 | -113.58 | -20.91 | -5.84 | SEC (XBRL)· 23 Mar 2026verified |
| Weighted average diluted shares | — | — | 39.2 k | 277.7 k | 7.5 m | 13.4 m | SEC (XBRL)· 23 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 18.9 m | 54.6 m | 13.2 m | 7.4 m | 134.5 m | 15.9 m | SEC (XBRL)· 23 Mar 2026verified |
| Receivables | — | — | 0 | — | — | — | SEC (XBRL)· 03 Aug 2023verified |
| Inventories | 3.0 k | 38.0 k | 20.0 k | 0 | — | — | SEC (XBRL)· 29 Mar 2024verified |
| Current assets | 26.0 m | 61.8 m | 16.4 m | 8.4 m | 138.9 m | 105.3 m | SEC (XBRL)· 23 Mar 2026verified |
| Goodwill | 14.4 m | 14.4 m | 14.4 m | 10.5 m | 10.5 m | 10.5 m | SEC (XBRL)· 23 Mar 2026verified |
| Intangibles (excl. goodwill) | 1.6 m | 38.0 k | 0 | — | — | — | SEC (XBRL)· 29 Mar 2023verified |
| Total assets | 43.8 m | 80.2 m | 33.4 m | 21.0 m | 150.7 m | 116.5 m | SEC (XBRL)· 23 Mar 2026verified |
| Accounts payable | 2.6 m | 3.4 m | 2.9 m | 446.0 k | 283.0 k | 137.0 k | SEC (XBRL)· 23 Mar 2026verified |
| Current liabilities | 15.2 m | 19.9 m | 22.1 m | 4.6 m | 7.0 m | 12.9 m | SEC (XBRL)· 23 Mar 2026verified |
| Total liabilities | 19.2 m | 57.1 m | 44.3 m | 13.7 m | 17.7 m | 33.4 m | SEC (XBRL)· 23 Mar 2026verified |
| Equity | 24.6 m † | 23.1 m † | -10.9 m † | 7.3 m † | 133.0 m † | 83.0 m † | SEC (XBRL)· 23 Mar 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -40.5 m | -70.9 m | -26.8 m | -30.7 m | -49.1 m | -51.5 m | SEC (XBRL)· 23 Mar 2026verified |
| Capex | 63.0 k | 113.0 k | 95.0 k | — | — | — | SEC (XBRL)· 29 Mar 2023verified |
| Free cash flow | -40.6 m ≈ | -71.0 m ≈ | -26.8 m ≈ | — | — | — | SEC (XBRL)· 29 Mar 2023derived |
| Investing cash flow | 11.1 m | -113.0 k | -95.0 k | -133.0 k | 356.0 k | -81.7 m | SEC (XBRL)· 23 Mar 2026verified |
| Financing cash flow | 44.8 m | 106.8 m | -14.7 m | 25.0 m | 175.8 m | 14.6 m | SEC (XBRL)· 23 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 3 of at least 6
- score weight coverage: 18.8% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 383.4 m USD
Key indicators
Coverage and freshness
Score by group
19% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · the input exists, but its latest figure is far older than the latest reported period: not used
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 3 of at least 6; score weight coverage: 18.8% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | -150,259.3% | 0 (vs peers) | 33% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | -85.2% | 0 (on a fixed band) | 44% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 16.6x | 100 (on a fixed band) | 22% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/3 factors with a value
- Growth· partial0/100 · 1/2 factors with a value
- Quality· partial0/100 · 1/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
AVALO THERAPEUTICS, INC. (AVTX). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 59.0 k USD in 2025; YoY growth -86.6%; net margin -150,259.3%; ROE -33.6%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (indicators available: 3 of at least 6; score weight coverage: 18.8% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 16.6x
What contradicts it
- Net margin: -150,259.3%
- Revenue CAGR 3Y: -85.2%
Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Pharmaceutical Preparations (SIC 2834) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LLYEli Lilly And Company | 1,283.9 bn | 44.3 | 86.1% | 31.9% | +44.7% | +27% / +131% |
| JNJJohnson & Johnson | 655.6 bn | 41.3 | 20.0% | 16.2% | +6.0% | +32% / +76% |
| ONCBeone Medicines Ltd. | 575.0 bn | 640.9 | 18.4% | 13.9% | +40.2% | +14% / +107% |
| ABBVAbbVie Inc. | 509.5 bn | 49.6 | — | 15.7% | +8.6% | +27% / +102% |
| MRKMerck & Co., Inc. | 362.2 bn | 151.2 | 5.1% | 3.6% | +1.3% | +40% / +43% |
| ABTAbbott Laboratories | 196.7 bn | 42.3 | 9.2% | 9.7% | +5.7% | −12% / +9% |
| PFEPfizer Inc | 170.3 bn | 42.6 | 4.4% | 6.3% | −1.6% | +16% / −2% |
| VRTXVertex Pharmaceuticals Inc | 137.5 bn | 34.9 | 20.8% | 30.7% | +8.9% | +25% / +53% |
| BMYBristol-Myers Squibb Company | 129.0 bn | 14.0 | 44.1% | 18.5% | −0.2% | +28% / +28% |
| TEVATeva Pharmaceutical Industries Limited | 48.8 bn | 97.3 | 6.6% | 3.6% | +4.3% | +55% / +325% |
| ZTSZoetis Inc. | 33.4 bn | 13.8 | 57.6% | 26.4% | +2.3% | −36% / −54% |
| ROIVRoivant Sciences Ltd. | 26.5 bn | — | -6.2% | -3,535.0% | −71.6% | +76% / +283% |
| RPRXRoyalty Pharma plc | 26.2 bn | 47.7 | 6.9% | 25.7% | +5.1% | +69% / +150% |
| UTHRUnited Therapeutics Corporation | 24.1 bn | 21.3 | 19.1% | 38.6% | +10.6% | +16% / +136% |
| INSMInsmed Inc | 23.9 bn | — | -72.5% | -39.9% | +66.7% | −48% / +335% |
| VTRSViatris Inc. | 21.7 bn | — | -24.3% | -23.9% | −3.0% | +77% / +107% |
| ALNYAlnylam Pharmaceuticals, Inc. | 21.0 bn | 7.9 | 126.6% | 52.8% | +65.2% | −65% / −7% |
| BBIOBridgeBio Pharma, Inc. | 14.5 bn | — | — | -61.3% | +126.3% | +3% / +159% |
| MDGLMadrigal Pharmaceuticals, Inc. | 9.3 bn | — | -24.8% | -10.9% | +432.1% | −33% / +97% |
| OGNOrganon & Co. | 3.6 bn | 18.0 | 20.3% | 3.5% | −2.9% | +79% / +22% |
| ZLABZai Lab Limited | 2.0 bn | — | -30.0% | -44.9% | +15.3% | +11% / −17% |
| SLSSELLAS Life Sciences Group, Inc. | 1.6 bn | — | -39.6% | — | −100.0% | +386% / +658% |
| OMEROmeros Corp | 1.2 bn | 9.9 | — | — | −34.0% | +76% / +679% |
| IRWDIronwood Pharmaceuticals Inc | 667.2 m | 4.5 | — | 37.4% | −15.7% | +15% / −59% |
| AVTXAvalo Therapeutics, Inc. | 383.4 m | — | -33.6% | -150,259.3% | −86.6% | −60% / −73% |
1- and 3-year price returns: for AVTX from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (05 Nov 2026 · results), 10-Q (05 Nov 2026).
In brief
Avalo Therapeutics is a clinical stage biotechnology company focused on IL-1β based treatments for immune-mediated inflammatory diseases, led by abdakibart in hidradenitis suppurativa. It matters now because positive Phase 2 LOTUS data in the second quarter of 2026 could support a move into Phase 3, with cash, cash equivalents and investments of 1 million USD as of June 30, 2026 2.
SWOT
Strengths
- The company has a portfolio focused on a single mechanism, IL-1β, and a lead candidate with recent positive Phase 2 data in hidradenitis suppurativa.
- Its cash position strengthened after the equity offering in the second quarter of 2026, extending its funding horizon into 2029 by its own estimate.
- The IL-1β class has a documented safety history, which may help prepare regulatory filings.
Weaknesses
- The company has no approved products and has generated no product sales revenue, so its dependence on clinical results is very high.
- It has no manufacturing facilities and relies on a single CDMO to manufacture clinical supply for its lead candidate.
- Net losses have been recorded in most periods since inception, and the company does not expect profitability in the near term.
Opportunities
- If Phase 3 confirms the observed benefit, abdakibart could offer a more durable response than existing HS treatments.
- The company can extend its IL-1β portfolio through AVTX-010 and other inflammatory indications, which could add value.
- Partnerships or regional rights licensing could bring capital without further dilution.
Threats
- Competitors with far greater resources may launch new HS therapies before the company, which could limit the market for abdakibart.
- A Phase 3 failure or significant delays could affect access to capital and the company's funding plan.
- Obligations to Eli Lilly, including milestones and royalties, could reduce margins if the product reaches the market.
Risks
- Phase 3 clinical failure riskhigh
Phase 2 results do not guarantee success in a pivotal study, and regulators may require additional studies before an application can be filed.
- Need for additional capitalhigh
The company will likely need new funds before the pivotal phase, and financing terms could be less favorable if markets deteriorate.
- Reliance on third-party suppliersmedium
Clinical supply depends on a single manufacturer, and any manufacturing or cGMP compliance problems could delay the program.
- Obligations to licensing partnermedium
Milestone and royalty payments to Eli Lilly could weigh on profitability if the product is approved and sold commercially.
- Competition from large companiesmedium
Competitors with greater resources and advanced HS programs could reduce the share of the company's candidate.
Investment thesis
What would need to be true (bull case)
- Positive Phase 2 LOTUS data and recent financing could allow the company to start Phase 3 on schedule and show a competitive benefit in HS.
- If AVTX-010 advances into the clinic, the IL-1β portfolio could extend the company's value beyond a single candidate.
- The HS market has documented unmet needs, and a treatment with a more durable response could hold a meaningful place in therapy.
What would break the thesis
- The company depends on a single lead candidate, and a Phase 3 failure could sharply reduce the value of its assets.
- Continued net losses and the need for additional capital could lead to significant dilution for shareholders.
- Competition from large companies and already approved therapies could limit adoption of abdakibart even if the data are favorable.
What to watch
- Initiation of the Phase 3 program for abdakibart in HSfirst half of 2027
- IND submission for AVTX-010first half of 2027
- Trend in research and development expenses after the LOTUS resultsnext 10-K
- Updated estimate of the company's funding runway2029
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (05 Nov 2026 · results), 10-Q (05 Nov 2026).
The business
The company's strategy covers advancing its pipeline to approval, acquiring or in-licensing complementary compounds, and opportunistically out-licensing rights to third parties 2. Abdakibart is subject to a worldwide exclusive license from Eli Lilly, under which Avalo owes development milestones, sales-based milestones and royalties 1. In the second quarter of 2026 the company also announced AVTX-010, a long-acting anti-IL-1β antibody, with an IND submission planned for the first half of 2027 3.
The net loss was 1 million USD for fiscal 2025, and the accumulated deficit reached 2 million USD at year end 1. The net loss for the six months ended June 30, 2026 was 3 million USD 2. The company says its existing funds could support operations into 2029, if its current operating plans hold 2.
Segments
AVTX-010
AVTX-010 is an Fc-engineered, long-acting next-generation anti-IL-1β antibody designed to extend half-life while preserving the pharmacology of abdakibart 3. The company announced its advancement in the second quarter of 2026 and expects to submit an IND application in the first half of 2027 3.
Market context
Hidradenitis suppurativa is a chronic skin disease that affected an estimated 1 million people in the United States in 2024, and the global HS market is expected to grow to more than 2 billion USD by 2035 1. Currently approved biologics, adalimumab, secukinumab and bimekizumab, achieve HiSCR50 only about half the time, and more stringent responses are rarer still 1. Many patients remain undiagnosed or untreated, leaving room for new therapies 1.
Of the estimated US HS population, only a portion has been diagnosed and treated, and that number is projected to grow by 2035 1. If Phase 3 results confirm the benefit seen in Phase 2, the market could prove more receptive to a new treatment with durable long-term benefit 1.
Trends
- Positive Phase 2 LOTUS datatailwind
Topline results in the second quarter of 2026 met the primary endpoint at both doses, and the benefit also appeared in key secondary endpoints, which could support the move into Phase 3 2.
- Capital needs ahead of Phase 3headwind
The company stated it will likely need additional funds before pivotal development or indication expansion, and access to capital could become harder if markets deteriorate 1.
- IL-1β class safety profiletailwind
IL-1β blockade has a known safety and tolerability profile supported by canakinumab, which may ease regulatory assessment of new molecules in the same class 1.
Competitive position
Major competitors include large companies such as AbbVie, Lilly, Merck, Novartis, Pfizer, Sanofi, Takeda and UCB, which have greater financial, research and commercial resources 1. Avalo's advantage lies in a molecule class focused exclusively on IL-1β, but it must prove its competitiveness against these companies 1.
- AbbVieABBV
Company marketing TNF-α inhibitors for HS and developing a JAK program and a dual IL-1α/β inhibitor in Phase 3.
- Sunshine Guojian Pharmaceutical
Developer of a non-biosimilar anti-IL-1β antibody in clinical development, a direct potential competitor in the same molecule class.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report05 Nov 2026Material agreement · Termination of a material agreement · Financial statements and exhibits
- Quarterly report05 Nov 2026
- Current report05 Nov 2026Results of operations · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Financial statements and exhibits
- Current report23 Jun 2026Departure or appointment of officers
- Current report16 Jun 2026Other events · Financial statements and exhibits
- Current report12 Jun 2026Item 3.02 · Item 3.03 · Departure or appointment of officers · Amendments to articles or bylaws · Financial statements and exhibits
- Current report08 Jun 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Quarterly report13 May 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Avalo Therapeutics, Inc. · 23 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Avalo Therapeutics, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Avalo Therapeutics, Inc. · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.