Avalo Therapeutics, Inc. reported a net loss of $13.1 million for the first quarter of 2025, a significant decrease from the $121.3 million loss recorded in the same period of the previous year. The company’s operating expenses totaled $14.7 million, down from $32.8 million in the prior year, primarily due to the absence of acquired in-process research and development costs that had impacted the previous year’s figures. Research and development expenses surged to $9.1 million, up from $2.1 million, reflecting increased clinical trial activities related to Avalo's lead asset, AVTX-009, an anti-IL-1β monoclonal antibody.
Avalo's cash and cash equivalents stood at $125.0 million as of March 31, 2025, a decrease from $134.5 million at the end of 2024. The company reported negative cash flows from operations of $9.5 million for the quarter, compared to $6.2 million in the same quarter of 2024. The increase in cash outflow was attributed to the ongoing costs associated with the LOTUS trial for AVTX-009, which commenced in October 2024. The company anticipates that its existing cash reserves will be sufficient to fund operations for at least the next twelve months.
In terms of strategic developments, Avalo completed the acquisition of AlmataBio in March 2024, which included the rights to AVTX-009. This acquisition has positioned Avalo to advance its clinical pipeline, particularly in the treatment of hidradenitis suppurativa. The company is also focused on expanding its research and development efforts and may consider out-licensing opportunities for its compounds. The appointment of Michael Heffernan as Chairman of the Board in March 2025 is expected to enhance the company’s leadership and strategic direction.
Operationally, Avalo has seen a notable increase in its employee headcount, which has contributed to higher general and administrative expenses, rising to $5.5 million from $3.2 million year-over-year. The company is actively managing its resources to support the ongoing development of AVTX-009 while also exploring additional strategic partnerships and financing options to bolster its financial position. Looking ahead, Avalo remains committed to advancing its clinical programs and achieving key milestones in its development pipeline, with a focus on regulatory approvals and potential market entry for its therapeutic candidates.
About Avalo Therapeutics, Inc.
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