Avalo plunges after rival AbbVie's skin drug trial disappoints
AVTX•Avalo Therapeutics shares fell 39% to $7.43 after AbbVie reported that its experimental skin disease drug lutikizumab achieved an 8-percentage-point benefit over placebo, below the 10% to 20% improvement analysts had expected.
1. Trial results weigh on Avalo
AbbVie said its experimental drug lutikizumab achieved an 8-percentage-point benefit over placebo in treating hidradenitis suppurativa, missing the 10% to 20% improvement range Cantor analysts had expected. Avalo is developing abdakibart, a monthly injectable targeting IL-1β for the same chronic skin condition. Cantor said investors fear abdakibart could see a similar decline in absolute efficacy in a late-stage trial. Wedbush analyst Robert Driscoll said AbbVie's modest efficacy raises questions about targeting IL-1β, but described Avalo's high-affinity antibody approach as more robust than AbbVie's dual-targeting drug.
