Avalo Therapeutics Q3 net loss narrows

Overview

• US biotech firm's Q3 net loss narrowed, and was smaller than analyst expectations

• Q3 operating expenses rose yr/yr, mainly due to higher R&D and G&A costs

Outlook

• Avalo plans to start Phase 3 trial for abdakibart in hidradenitis suppurativa in H1 2027

• Company anticipates IND submission for AVTX-010 in H1 2027

• Avalo expects current cash resources to fund operations into 2029

Result Drivers

• R&D SPEND - Co said higher Q3 research and development expenses were mainly due to increased manufacturing activities for AVTX-010 and abdakibart, and higher personnel costs

• CLINICAL EXPENSES - Co said lower clinical expenses for LOTUS trial partially offset higher R&D costs

• G&A COSTS - Co said higher Q3 general and administrative expenses were mainly due to increased stock-based compensation and personnel costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for Avalo Therapeutics, Inc. is $38.00, about 437.5% above its November 4 closing price of $7.07

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)