Avalo Therapeutics, a clinical stage biotechnology company, reported minimal revenue for the third quarter of 2024, consistent with the same period in 2023, following the expiration of its license and supply agreement for Millipred. The company recognized a benefit of $0.7 million to cost of product sales, compared to $0.2 million in Q3 2023, mainly due to a reversal of a reserve against receivables from Aytu BioScience. Research and development expenses increased by $8.3 million, driven by clinical and CMC expenses related to the initiation of the LOTUS Trial for AVTX-009, an anti-IL-1β monoclonal antibody for hidradenitis suppurativa. General and administrative expenses also rose by $1.8 million due to increased salaries, benefits, and stock compensation expenses. Other income, net, saw a significant increase of $37.4 million, primarily from...Show More

Avalo Therapeutics, a clinical stage biotechnology company, reported minimal revenue for the third quarter of 2024, consistent with the same period in 2023, following the expiration of its license and supply agreement for Millipred. The company recognized a benefit of $0.7 million to cost of product sales, compared to $0.2 million in Q3 2023, mainly due to a reversal of a reserve against receivables from Aytu BioScience. Research and development expenses increased by $8.3 million, driven by clinical and CMC expenses related to the initiation of the LOTUS Trial for AVTX-009, an anti-IL-1β monoclonal antibody for hidradenitis suppurativa. General and administrative expenses also rose by $1.8 million due to increased salaries, benefits, and stock compensation expenses. Other income, net, saw a significant increase of $37.4 million, primarily from a gain on the change in fair value of warrant liability. Avalo ended the quarter with $81.9 million in cash and cash equivalents, bolstered by $58.1 million in proceeds from warrant exercises post-quarter. The company expects its current cash to fund operations into at least 2027. Avalo's strategy focuses on advancing its pipeline, including the ongoing Phase 2 LOTUS Trial, out-licensing rights, and acquiring or licensing complementary compounds. However, there is no guarantee of FDA approval for their products, and the approval process is complex and costly.