Avalo Therapeutics, Inc. reported a net loss of $35.1 million for the year ended December 31, 2024, a $3.6 million increase compared to the $31.5 million net loss in 2023. Total operating expenses rose by $39.7 million, primarily due to $27.6 million in acquired in-process research and development from the AlmataBio acquisition in Q1 2024, a $10.7 million increase in research and development expenses, and a $6.9 million increase in general and administrative expenses. These increases were partially offset by a $37.7 million increase in other income, largely resulting from the exercise of warrants issued in 2024.
Product revenue, net, decreased to $0.4 million in 2024 from $1.4 million in 2023, reflecting the expiration of the Millipred® license and supply agreement on September 30, 2023. Research and development expenses increased due to AVTX-009 development costs, including trial initiation and progression, and manufacturing. General and administrative expenses increased due to employee compensation, consulting, and legal fees related to the AlmataBio acquisition and 2024 financing. The company expects further increases in research and development expenses in 2025 due to the continued LOTUS trial for AVTX-009.
A key strategic development was the acquisition of AlmataBio, Inc. in March 2024, which brought Avalo its lead asset, AVTX-009, an anti-IL-1β monoclonal antibody. This acquisition was accompanied by a private placement raising approximately $175.8 million in net proceeds. Following the acquisition, Avalo initiated the Phase 2 LOTUS trial for AVTX-009 in hidradenitis suppurativa (HS) in October 2024, with topline data expected in 2026. The company also dosed its first patient in the LOTUS trial in October 2024 and made a $5 million milestone payment to former AlmataBio stockholders.
As of December 31, 2024, Avalo had $134.5 million in cash and cash equivalents, a significant increase from $7.4 million at the end of 2023. The company anticipates that its current cash position will fund operations into at least 2027. Avalo employed 23 full-time employees as of December 31, 2024, with 13 engaged in research and development. The company's outlook includes continued operational execution on the development of AVTX-009, progression of the LOTUS trial, and exploration of AVTX-009's potential in other immune-mediated diseases. The company also notes that it is exploring strategic alternatives for its legacy programs.
About Avalo Therapeutics, Inc.
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