Avalo Reports First Quarter 2024 Financial Results and Provides Business Updates

Core Insights - Avalo Therapeutics is progressing towards initiating a Phase 2 trial of AVTX-009 for hidradenitis suppurativa, with topline results expected in 2026 [1][3] - The company reported a cash balance of approximately $110 million as of March 31, 2024, which is expected to fund operations into 2027 [1][4] Program Updates and Milestones - AVTX-009 is an anti-IL-1β monoclonal antibody targeting inflammatory diseases, with plans to develop it for at least one additional chronic inflammatory indication [3] - Avalo is also working on a next-generation anti-IL-1β mAb with an extended half-life [3] - The company is conducting strategic reviews of its quisovalimab (AVTX-002) and AVTX-008 programs [3] Financial Update - For Q1 2024, Avalo reported a net loss of $121.3 million, primarily due to the excess of warrant fair value over private placement proceeds [5] - The company closed a private placement investment for up to $185 million, including an initial gross investment of $115.6 million [4] - Cash and cash equivalents increased significantly from $7.4 million as of December 31, 2023, to $110.2 million as of March 31, 2024 [7] Consolidated Balance Sheets - Total assets as of March 31, 2024, were $123.7 million, a substantial increase from $20.99 million as of December 31, 2023 [7][12] - Current liabilities rose to $215.7 million, primarily due to the warrant liability of $194.9 million [7][12] Consolidated Statements of Operations - Total revenues for Q1 2024 were $0, compared to $475,000 in Q1 2023 [13] - Operating expenses for Q1 2024 totaled $32.8 million, with significant costs attributed to acquired in-process research and development [13]