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Avalo Therapeutics Reports Positive Phase 2 HS Results, Prices $375 Million Offering

The twin updates position Avalo to begin Phase 3 testing of a potential new treatment for hidradenitis suppurativa.

Overview

  • Avalo said after Tuesday's market close that its 253-patient Phase 2 LOTUS study met the main goal for abdakibart in hidradenitis suppurativa.
  • The drug posted HiSCR75 response rates of about 42% at both doses by week 16 with p-values near 0.02, and side effects were similar to placebo.
  • The company priced an underwritten deal at $17.75 per share for about $375 million in gross proceeds, which it said will fund Phase 3 through a topline readout, with closing expected May 7.
  • Shares jumped, with a pre-market gain of 33% and a regular session close up 18% at $16.26, according to Benzinga Pro.
  • Hidradenitis suppurativa is a chronic inflammatory skin disease that affects an estimated 0.7% to 1.2% of Americans, according to the company.