DealsApr 28, 2026, 07:07 AM
AVTX Buys Option to Settle $15M Milestone for $7.375M
AI Summary
Avalo Therapeutics, Inc. has entered into a Milestone Buyout Option and Amendment Agreement related to its 2024 acquisition of AlmataBio, Inc. Avalo paid $2.25 million for an option, exercisable within 90 days, to pay an additional $5.125 million in cash or stock. This transaction would replace a $15 million contingent milestone payment due upon the first patient being dosed in a Phase 3 trial, effectively reducing the potential payout to $7.375 million.
Key Highlights
- AVTX paid $2.25 million for an option to buy out a contingent milestone payment.
- The option allows AVTX to pay an additional $5.125 million in cash or stock.
- This buyout would replace a previously disclosed $15 million contingent milestone payment.
- The total potential payment for the buyout is $7.375 million.
- The option is exercisable within 90 days of the effective date.
- The original $15 million payment was contingent on the first patient being dosed in a Phase 3 trial.