Avalo Therapeutics, a clinical stage biotechnology company, reported a net loss of $121.3 million for the first quarter ended March 31, 2024, with negative cash flows from operations amounting to $6.2 million. The company's financial performance reflects a significant increase in net loss compared to the $10.0 million net loss for the same period in 2023. This increase is primarily due to the excess of warrant fair value over private placement proceeds, which resulted in a $79.3 million loss. Avalo's liquidity position includes $110.2 million in cash and cash equivalents as of March 31, 2024. The company recently closed a private placement investment for up to $185 million in gross proceeds, with an initial upfront gross investment of $115.6 million and net proceeds of approximately $108.1 million after transaction costs. Avalo...Show More

Avalo Therapeutics, a clinical stage biotechnology company, reported a net loss of $121.3 million for the first quarter ended March 31, 2024, with negative cash flows from operations amounting to $6.2 million. The company's financial performance reflects a significant increase in net loss compared to the $10.0 million net loss for the same period in 2023. This increase is primarily due to the excess of warrant fair value over private placement proceeds, which resulted in a $79.3 million loss. Avalo's liquidity position includes $110.2 million in cash and cash equivalents as of March 31, 2024. The company recently closed a private placement investment for up to $185 million in gross proceeds, with an initial upfront gross investment of $115.6 million and net proceeds of approximately $108.1 million after transaction costs. Avalo could receive an additional $69.4 million upon the exercise of warrants issued in the financing. The company expects its current cash to fund operations into 2027. In terms of business development, Avalo acquired AVTX-009, a Phase 2-ready anti-IL-1β monoclonal antibody, through a merger with AlmataBio Inc. and plans to progress its pipeline assets towards commercialization. Avalo's strategy includes advancing its pipeline, developing go-to-market strategies for approved compounds, out-licensing rights, and acquiring or licensing complementary compounds. The company's future plans involve increasing research and development expenses in 2024 to support the development of AVTX-009, which was acquired in late March 2024.