Avalo Reports 42.9% HiSCR75 Response, Raises $431.3M in Offering
Avalo Therapeutics reported Phase 2 LOTUS results showing 42.2% and 42.9% HiSCR75 improvements at Week 16 versus 25.6% placebo (p=0.018 and p=0.015). The company raised $431.3 million in an offering and held $82 million in cash and short-term investments at March 31, 2026, funding operations into 2029.
1. Phase 2 LOTUS Trial Results
On May 5, Avalo announced topline results for adults with moderate to severe hidradenitis suppurativa in its Phase 2 LOTUS trial of abdakibart. Both 150mg and 300mg doses met the primary endpoint with 42.2% and 42.9% HiSCR75 responder rates at Week 16 versus 25.6% on placebo (p=0.018 and p=0.015) and showed statistically significant improvements in HiSCR50, IHS4 score changes and draining tunnel counts.
2. Financing and Cash Position
On May 7, Avalo completed a public offering of common stock and pre-funded warrants, raising gross proceeds of $431.3 million (net approximately $405.0 million). As of March 31, 2026, the company held $82.0 million in cash, cash equivalents and short-term investments, with the financing expected to fund operations into 2029.
3. Next Steps Toward Phase 3
With positive Phase 2 results and a strengthened balance sheet, Avalo plans to initiate a registrational Phase 3 program for abdakibart, targeting a patient-friendly monthly dosing regimen. The company also executed a milestone buyout option related to its AlmataBio acquisition to reduce future contingent milestone payments.