Avalo Therapeutics (AVTX) Q2 2026 earnings summary

Executive summary

• Reported positive topline Phase 2 LOTUS results for abdakibart in hidradenitis suppurativa, meeting primary and key secondary endpoints, supporting advancement to Phase 3 trials in 2027.

• Expanded pipeline with AVTX-010, a next-generation anti-IL-1β antibody, with IND submission planned for 2027.

• Completed a significant equity offering in Q2 2026, raising net proceeds of $405 million to fund operations and pipeline development.

• Appointed Ron Philip to the Board of Directors, adding commercial and strategic expertise.

• Added to the Russell 2000 and 3000 Indexes during the FTSE Russell annual reconstitution.

Financial highlights

• Cash, cash equivalents, and investments totaled $472.2 million as of June 30, 2026, expected to fund operations into 2029.

• Net loss for Q2 2026 was $36.4 million and $56.0 million for the six months ended June 30, 2026, up year-over-year due to increased R&D and G&A expenses.

• Operating expenses rose to $31.5 million in Q2 2026 from $19.3 million in Q2 2025, driven by R&D and G&A increases.

• Research and development expenses rose to $23.4 million in Q2 2026, up $9.3 million year-over-year, driven by a $10 million milestone for abdakibart.

• General and administrative expenses increased to $8.1 million, up $2.9 million year-over-year, primarily due to stock-based compensation.

Outlook and guidance

• Existing cash and investments expected to fund operations into 2029.

• Plans to initiate Phase 3 program for abdakibart in HS in the first half of 2027.

• IND submission for AVTX-010 expected in the first half of 2027.

• Anticipates increased R&D and G&A expenses as abdakibart advances to Phase 3 and infrastructure expands.

• Future funding may be sought through additional equity, partnerships, or asset sales.