Avalo Therapeutics Prices $375M Offering of 19.7M Shares and 1.4M Warrants
Avalo Therapeutics priced 19.73 million shares at $17.75 and 1.4 million pre-funded warrants at $17.749, targeting gross proceeds of $375 million with a 30-day option for 3.17 million additional shares. Offering expected to close May 7, 2026, to fund Phase 3 topline data for abdakibart plus corporate needs.
1. Offering Terms
Avalo Therapeutics is selling 19,730,000 common shares at $17.75 each and 1,400,000 pre-funded warrants at $17.749 apiece, representing a per-share price net of the $0.001 warrant exercise cost. Underwriters have a 30-day option to purchase up to 3,169,500 additional common shares on identical terms.
2. Use of Proceeds
The company expects to raise approximately $375 million in gross proceeds, before underwriting discounts and expenses. Avalo will combine the net offering proceeds with existing cash to advance the Phase 3 topline data release for its lead anti-IL-1β antibody abdakibart, as well as fund working capital and general corporate purposes.
3. Timeline and Closing
The offering is scheduled to close on May 7, 2026, subject to customary closing conditions. Joint bookrunning managers include Leerink Partners, TD Cowen, BofA Securities, Piper Sandler and Cantor.
4. Company Pipeline Context
Avalo Therapeutics is a clinical-stage biotech focused on IL-1β treatments for immune-mediated inflammatory diseases. Its lead asset abdakibart recently reported positive Phase 2 topline data in hidradenitis suppurativa and is now progressing toward Phase 3 evaluation.