Avalo Therapeutics (AVTX) investor relations material

Executive summary

• Reported positive topline results from Phase 2 LOTUS trial for abdakibart in moderate to severe hidradenitis suppurativa, meeting primary and key secondary endpoints, and planning advancement to registrational Phase 3 trials.

• Completed a public equity offering in May 2026, raising gross proceeds of $431.3 million and net proceeds of $405.0 million to fund operations and clinical development.

• Net loss for Q1 2026 was $19.6 million, with negative cash flows from operations of $17.7 million.

• As of March 31, 2026, held $82.0 million in cash, cash equivalents, and short-term investments, excluding subsequent financing.

• Entered a milestone buyout agreement related to the AlmataBio acquisition, amending a $15.0 million milestone to a $2.25 million payment with an option for a further $5.125 million.

Financial highlights

• Research and development expenses increased to $14.0 million in Q1 2026 from $9.1 million in Q1 2025, mainly due to clinical and manufacturing activities for abdakibart.

• General and administrative expenses rose to $6.9 million from $5.5 million year-over-year, mainly due to higher headcount and stock-based compensation.

• Other income, net, was $1.3 million, down from $1.5 million in the prior year, primarily due to lower interest income.

• Net cash used in operating activities was $17.7 million for Q1 2026.

• Accumulated deficit stood at $468.2 million as of March 31, 2026.

Outlook and guidance

• Existing cash, cash equivalents, short-term investments, and net proceeds from the May 2026 offering are expected to fund operations for at least twelve months and into 2029.

• Anticipates increased R&D and G&A expenses as abdakibart advances into registrational Phase 3 trials.

• Plans to initiate a registrational Phase 3 program for abdakibart in hidradenitis suppurativa.