Corporate ActionMay 13, 2026, 07:07 AM
Avalo Therapeutics Raises $405M Net in Follow-on Offering
AI Summary
Avalo Therapeutics, a clinical-stage biotechnology company, completed a follow-on offering on May 7, 2026, raising approximately $405.0 million in net proceeds. This capital raise, which included common stock and pre-funded warrants, significantly bolsters the company's liquidity, following positive Phase 2 clinical trial data for its lead asset, abdakibart. For the three months ended March 31, 2026, the company reported a net loss of $19.6 million and negative cash flows from operations of $17.7 million.
Key Highlights
- Completed follow-on offering on May 7, 2026, raising approximately $405.0 million in net proceeds.
- Reported a net loss of $19.6 million for the three months ended March 31, 2026.
- Cash and cash equivalents plus short-term investments totaled $82.0 million as of March 31, 2026.
- Research and development expenses increased to $14.0 million from $9.1 million year-over-year.
- General and administrative expenses rose to $6.9 million from $5.5 million year-over-year.
- Total operating expenses were $20.9 million for the quarter, up from $14.7 million.
- Weighted average common shares outstanding increased to 20.1 million from 10.5 million year-over-year.
- Fair value of derivative liability decreased by $0.5 million to $17.5 million as of March 31, 2026.