Avalo Reports Q4 2024 Financial Results, Updates Business Outlook

Avalo Therapeutics reported 2024 financial results and business updates, including the Phase 2 LOTUS trial for AVTX-009 in hidradenitis suppurativa expected to release data in 2026. The company appointed Jennifer Riley as Chief Strategy Officer and had cash on hand of approximately $135 million, expected to provide runway into at least 2027. Research and development expenses increased to $24.4 million in 2024, driven by costs of the Phase 2 LOTUS trial.

Title: Avalo Therapeutics' 2024 Financial Results and Strategic Updates: A Path Forward for AVTX-009

Avalo Therapeutics (NASD: AVTX) recently reported its 2024 financial results, showcasing a robust financial position and promising progress in its clinical pipeline. The company's cash reserves, bolstered by a successful private placement, are expected to provide runway into at least 2027 [1].

Key financial metrics for 2024 included a net loss of $35.1 million, up from $31.5 million in 2023, driven primarily by increased research and development (R&D) expenses related to the ongoing Phase 2 LOTUS trial for AVTX-009 in hidradenitis suppurativa (HS) [1]. R&D expenses rose to $24.4 million, a $10.7 million increase from 2023, reflecting the company's commitment to advancing its lead asset through clinical development.

In addition to financial updates, Avalo announced several strategic moves. Jennifer Riley joined as Chief Strategy Officer in January 2025, bringing extensive experience to guide strategy and pipeline planning [1]. The company also reported that topline data from the Phase 2 LOTUS trial is expected in 2026, evaluating approximately 180 adults with HS [1].

Avalo's financial position demonstrates significant improvement despite increased operating losses. The company's cash reserves of $134.5 million, combined with the successful $185 million private placement, provide a substantial cushion for a clinical-stage biotech navigating lengthy development timelines [1].

The increased net loss of $35.1 million (up $3.6 million from 2023) reflects strategic investments rather than operational challenges. A one-time $27.6 million in-process R&D charge for the AlmataBio acquisition strategically expanded their pipeline with AVTX-009 [1].

The 38% increase in administrative expenses ($17.2 million, up $6.9 million) appears justified by expanded operations and infrastructure needed for their growing pipeline and post-acquisition integration [1].

As Avalo advances its lead program through mid-stage clinical development, with milestone catalysts expected in 2026, the company's financial strengthening comes at an ideal time [1].

[1] StockTitan. (2023, January 10). Avalo Reports 2024 Financial Results and Recent Business Updates. https://www.stocktitan.net/news/AVTX/avalo-reports-2024-financial-results-and-recent-business-l0yxbzqruzg1.html