Avalo Therapeutics' Promising Phase 2 Trial and Strong Market Opportunities Drive Buy Rating.

Friday, Aug 8, 2025 5:03 pm ET1min read

Analyst Julian Harrison of BTIG maintains a Buy rating on Avalo Therapeutics with a $40.00 price target. Harrison cites the company's promising Phase 2 trial for AVTX-009 in treating hidradenitis suppurativa, expected topline data by mid-2026, and strong cash position to sustain operations into 2028. The HS market is projected to grow significantly, providing ample opportunity for advanced therapies like AVTX-009 to succeed commercially.

Avalo Therapeutics, Inc. (Nasdaq: AVTX) has provided updates on its Phase 2 LOTUS trial for AVTX-009, aimed at treating hidradenitis suppurativa (HS), and appointed Rita Jain, M.D., to its Board of Directors. The company also reported its second quarter 2025 financial results. The topline data from the Phase 2 LOTUS trial is expected in mid-2026, indicating progress in clinical development that could lead to new treatment options for HS. Dr. Jain brings extensive experience in clinical development and regulatory strategy, which may enhance the company's leadership and strategic direction.

As of August 2025, the LOTUS trial has enrolled over 75% of its target participants and aims to complete enrollment by year-end. The company reported approximately $113 million in cash and short-term investments as of June 30, 2025, providing a solid financial runway expected to fund operations into 2028. Despite a net loss of $20.8 million for the second quarter of 2025, largely due to increased research and development costs related to the trial, the company's financial position remains strong.

Analyst Julian Harrison of BTIG maintains a Buy rating on Avalo Therapeutics with a $40.00 price target. Harrison cited the company's promising Phase 2 trial, expected topline data by mid-2026, and strong cash position to sustain operations into 2028. The HS market is projected to grow significantly, providing ample opportunity for advanced therapies like AVTX-009 to succeed commercially.

References:
[1] https://www.quiverquant.com/news/Avalo+Therapeutics+Provides+Updates+on+Phase+2+LOTUS+Trial+for+AVTX-009%2C+Appoints+Rita+Jain%2C+M.D.+to+Board%2C+and+Reports+Q2+2025+Financial+Results

Avalo Therapeutics' Promising Phase 2 Trial and Strong Market Opportunities Drive Buy Rating.

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