Avalo Therapeutics Q1 net loss widens on increased R&D spend

Overview

• US biotech firm's Q1 net loss missed analyst expectations

• Q1 pretax profit missed analyst estimates, driven by higher R&D and admin expenses

• Company completed $431.3 mln equity offering, boosting cash position

Outlook

• Avalo plans to advance abdakibart into a registrational phase 3 program in HS

• Company expects current cash and investments to fund operations into 2029

Result Drivers

• R&D SPENDING - Higher research and development expenses driven by costs related to and supporting the Phase 2 LOTUS trial

• ADMINISTRATIVE COSTS - General and administrative expenses rose due to headcount additions and stock-based compensation

Company press release: ID:nGNX7FyxG

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for Avalo Therapeutics Inc is $42.00, about 110.6% above its May 12 closing price of $19.94

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.