Cash, cash equivalents and short-term investments of approximately $98 million as of December 31, 2025 expected to provide runway into 2028
WAYNE, Pa., March 23, 2026 (GLOBE NEWSWIRE) -- Avalo Therapeutics, Inc. (NASDAQ:AVTX) ("Avalo"), a clinical stage biotechnology company fully dedicated to developing IL-1β-based treatments for immune-mediated inflammatory diseases, today announced business updates and year-end financial results for 2025.
"2025 was a year of disciplined execution focused on the LOTUS trial, and we are thrilled to be approaching a transformational milestone with our topline data release expected in the second quarter of 2026," said Dr. Garry Neil, Chief Executive Officer. "We look forward to sharing the results which have the potential to demonstrate abdakibart's (AVTX-009) high affinity inhibition of IL-1β and positive impact on addressing the large unmet need of patients living with hidradenitis suppurativa."
Upcoming Anticipated Milestone:
Abdakibart (AVTX-009) Phase 2 LOTUS trial: The global study which includes approximately 250 adults with hidradenitis suppurativa (HS) is designed to evaluate the efficacy and safety of subcutaneous bi-weekly and monthly dosing regimens compared to placebo.
Topline data expected in the second quarter of 2026.
2025 Financial Update:
Cash, cash equivalents and short-term investments were $98.3 million as of December 31, 2025. Net cash used in operating activities was $51.5 million for the year ended December 31, 2025. Avalo's current cash, cash equivalents and short-term investments are expected to fund operations into 2028.
Research and development expenses were $50.1 million for the year ended December 31, 2025, an increase of $25.6 million from the year ended December 31, 2024, driven by costs related to and supporting the Phase 2 LOTUS trial.
General and administrative expenses were $22.9 million for the year ended December 31, 2025, an increase of $5.7 million from the year ended December 31, 2024, primarily driven by stock-based compensation expense and headcount additions.
Net loss was $78.3 million for the year ended December 31, 2025, as compared to net loss of $35.1 million for the year ended December 31, 2024. The difference was driven by $38.7 million change in other (expenses) income from the prior period primarily related to the warrants issued in the March 2024 private placement, all of which were fully exercised in 2024. Operating expenses increased by $4.0 million mainly due to a $25.6 million increase in research and development expenses, as discussed above, and $5.7 million increase in general and administrative expenses, as discussed above, largely offset by $27.6 million of in-process research and development recognized in 2024 that did not repeat. Basic and diluted net loss per share was $5.84 for the year-ended December 31, 2025 compared to basic net loss per share of $7.94, based on 13,404,830 weighted average common shares outstanding and 4,426,149 weighted average basic common shares outstanding, respectively. Diluted net loss per share for the year ended December 31, 2024 was $20.91, based on 7,496,389 weighted average diluted common shares outstanding.
Consolidated Balance Sheets(In thousands, except share and per share data)
December 31,
2025
2024
Assets
Current assets:
Cash and cash equivalents
$
15,858
$
134,546
Short-term investments
82,478
—
Prepaid expenses and other current assets
6,913
4,325
Restricted cash, current portion
37
19
Total current assets
105,286
138,890
Property and equipment, net
460
1,209
Goodwill
10,502
10,502
Restricted cash, net of current portion
210
131
Total assets
$
116,458
$
150,732
Liabilities, mezzanine equity and stockholders' equity
Current liabilities:
Accounts payable
$
137
$
283
Accrued expenses and other current liabilities
12,803
6,317
Derivative liability, current
—
360
Total current liabilities
12,940
6,960
Royalty obligation
2,000
2,000
Deferred tax liability, net
434
