Wayne, Pennsylvania-based Avalo Therapeutics (Nasdaq: AVTX) announced the pricing of an underwritten public offering totaling USD 375 million in gross proceeds, with capital directed toward advancing its lead IL-1β inhibitor through a Phase III readout. The raise follows positive topline data from a Phase II trial of abdakibart in hidradenitis suppurativa, providing the clinical catalyst that supported investor demand at scale.
The offering comprised 19,730,000 shares of common stock priced at USD 17.75 per share, alongside pre-funded warrants to purchase 1,400,000 shares at USD 17.749 per warrant, reflecting the per-share offering price less a USD 0.001 exercise price. Underwriters were granted a 30-day option to purchase up to an additional 3,169,500 shares on the same terms, which is not reflected in the USD 375 million gross proceeds figure. The offering was expected to close on May 7, 2026, subject to customary closing conditions. No specific institutional investors were named in the source beyond the five joint bookrunning managers: Leerink Partners, TD Cowen, BofA Securities, Piper Sandler, and Cantor. Avalo stated proceeds will fund abdakibart's clinical development through Phase III topline data, with remaining capital allocated to working capital and general corporate purposes.
In April 2026, Avalo entered a milestone restructuring agreement with former AlmataBio securityholders, paying USD 2.25 million for an option to settle a USD 15 million Phase III milestone obligation for an additional USD 5.125 million within 90 days, reducing total potential outlay on that liability to approximately USD 7.375 million.