WAYNE, PA., May  22, 2026  (GLOBE NEWSWIRE) -- Avalo Therapeutics, Inc. (NASDAQ:AVTX), a clinical stage biotechnology company fully dedicated to developing IL-1β-based treatments for immune-mediated inflammatory

AVTX

Avalo Therapeutics Announces Inducement Grant to New Employee Under Nasdaq Listing Rule 5635(c)(4)

Avalo Therapeutics Grants Stock Options Amid Positive Clinical Trial Data

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  <section data-block="information">
    <h3>Information</h3>
    <p>WAYNE, PA., May  22, 2026  (GLOBE NEWSWIRE) -- Avalo Therapeutics, Inc. (NASDAQ:AVTX), a clinical stage biotechnology company fully dedicated to developing IL-1β-based treatments for immune-mediated inflammatory</p>
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  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>Avalo Therapeutics, Inc. has granted an employee stock option for 34,000 shares at $16.60, coinciding with positive Phase 2 trial results for its drug abdakibart. These developments could enhance investor confidence and potentially drive stock performance in the near term.</p>
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  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>Avalo granted an option for 34,000 shares to a new employee.</li><li>The option exercise price is set at $16.60 per share.</li><li>25% of shares will vest after one year, then monthly for 36 months.</li><li>Avalo is focused on IL-1β-based treatments for inflammatory diseases.</li><li>Positive Phase 2 data for lead asset abdakibart was recently reported.</li></ul>
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  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>Avalo Therapeutics (AVTX)</strong>: Recent developments enhance potential as a growth stock.</li></ul>
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  <section data-block="category">
    <h3>Corporate Developments</h3>
    <p>This news falls under Corporate Developments as it highlights employee stock options and clinical progress, indicating organizational growth and investor attraction potential. A successful clinical trial can significantly affect Avavo&#039;s market positioning and valuation.</p>
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  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>Positive topline data from abdakibart may drive stock prices higher.</li><li>Vesting stock options could affect share supply and investor sentiment.</li><li>Employee additions suggest growth and confidence in company direction.</li></ul>
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  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Avalo granted 34,000 shares at $16.60 per share on May 21, 2026.</li><li>25% of shares vest after one year; remainder monthly over three years.</li><li>Avalo&#039;s drug abdakibart has shown positive Phase 2 trial results.</li></ul>
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  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Consider accumulating AVTX shares for a short-term upside potential following recent positive trial results.</p>
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<link type="text/css" rel="stylesheet" href="https://www.globenewswire.com/styles/gnw_nitf.css"></link><p align="justify">WAYNE, PA., May  22, 2026  (GLOBE NEWSWIRE) -- Avalo Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/AVTX">AVTX</a>), a clinical stage biotechnology company fully dedicated to developing IL-1β-based treatments for immune-mediated inflammatory diseases, today announced that the Company granted an inducement award consisting of an option to purchase 34,000 shares of its common stock to one new employee (the "Option"). The award was approved by the Compensation Committee of the Board of Directors as an inducement material to the employee entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).</p>  <p align="justify">The Option was granted on May 21, 2026 and has an exercise price of $16.60 per share, which is equal to the closing price of Avalo's common stock on the grant date. The Option will vest as to 25% of the underlying shares of common stock on the one-year anniversary of the employee's start date of employment, and the balance of the underlying shares of common stock vesting monthly thereafter over 36 months, subject to the employee's continued service relationship with Avalo through the applicable vesting dates. The Option is subject to the terms and conditions of Avalo's 2025 Inducement Award Plan and award agreements thereunder.</p>  <p align="justify"><strong>About Avalo Therapeutics</strong></p>  <p align="justify">Avalo Therapeutics is a clinical stage biotechnology company fully dedicated to developing IL-1β-based treatments for immune-mediated inflammatory diseases. Our lead asset, abdakibart, is an anti-IL-1β monoclonal antibody (mAb). Positive topline data was recently reported for abdakibart in a Phase 2 clinical trial in hidradenitis suppurativa (HS). We're also exploring additional opportunities to make an impact in prevalent indications that have significant remaining unmet needs. For more information about Avalo, please visit <a href="http://www.avalotx.com" title="www.avalotx.com">www.avalotx.com</a>.</p>  <p align="justify"><strong>About Abdakibart </strong></p>  <p align="justify">Abdakibart is a humanized monoclonal antibody (IgG4) that binds to interleukin-1β (IL-1β) with high affinity and neutralizes its activity. IL-1β is a pro-inflammatory cytokine that plays a central role in the pathogenesis of a wide range of human diseases.<sup>1</sup> It activates immune cells that generate proinflammatory cytokines, including IL-6, TNF-α, and IL-17. Dysregulated IL-1β signaling is a major driver of inflammation, contributing to the progression of autoimmune disorders. IL-1β inhibition has proven effective in multiple immune-mediated inflammatory diseases. <sup>1-3</sup></p>  <p align="justify">References:<sup>1</sup>Dinarello CA. Immunol Rev. 2018;281(1):8-27. <sup>2</sup>Kany S et al. Int J Mol Sci. 2019;20(23):6008. <sup>3</sup>Kimball AB et al. Presented at: American Academy of Dermatology; March 8-12, 2024; San Diego, CA.</p>  <p align="justify"><strong>Forward-Looking Statements</strong></p>  <p align="justify">This press release may include forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond Avalo's control), which could cause actual results to differ from the forward-looking statements. Such statements may include, without limitation, statements with respect to Avalo's plans, objectives, projections, expectations and intentions and other statements identified by words such as "projects," "may," "might," "will," "could," "would," "should," "continue," "seeks," "aims," "predicts," "believes," "expects," "anticipates," "estimates," "intends," "plans," "potential," or similar expressions (including their use in the negative), or by discussions of future matters such as: drug development costs, timing of trials and trial results and other risks, including reliance on investigators and enrollment of patients in clinical trials; reliance on key personnel; regulatory risks; general economic and market risks and uncertainties, including those caused by the war in Ukraine and the Middle East; and those other risks detailed in Avalo's filings with the Securities and Exchange Commission, available at <a href="http://www.sec.gov" title="www.sec.gov">www.sec.gov</a>. Actual results may differ from those set forth in the forward-looking statements. Except as required by applicable law, Avalo expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Avalo's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.</p>  <p><strong>For media and investor inquiries</strong><br></br>Christopher Sullivan, CFO<br></br>Avalo Therapeutics, Inc. <br></br>ir@avalotx.com<br></br>410-803-6793</p>  <p align="justify"><em>or</em></p>  <p align="justify">Meru Advisors<br></br>Lauren Glaser<br></br>lglaser@meruadvisors.com</p> <img alt="" class="__GNW8366DE3E__IMG" src="https://www.globenewswire.com/newsroom/ti?nf=OTcyNTQzNSM3NjE3ODMxIzIwMTkzMjA="></img> <br></br><img alt="" src="https://ml.globenewswire.com/media/NzRiNjJjMGYtNTkxNy00Mjg2LTk4MzUtYjIwNWM3Y2Q1M2I2LTEwMzA4OTMtMjAyNi0wNS0yMi1lbg==/tiny/Avalo-Therapeutics.png" referrerpolicy="no-referrer-when-downgrade"></img><p><a href="https://www.globenewswire.com/NewsRoom/AttachmentNg/950a0fc1-6e06-40b5-9adc-6d3d9f2d5e78"><img src="https://ml.globenewswire.com/media/950a0fc1-6e06-40b5-9adc-6d3d9f2d5e78/small/avalo-final-black-01-jpg.jpg" border="0" width="150" height="81" alt="Primary Logo"></img></a></p>

Avalo Therapeutics, Inc. has granted an employee stock option for 34,000 shares at $16.60, coinciding with positive Phase 2 trial results for its drug abdakibart. These developments could enhance investor confidence and potentially drive stock performance in the near term.

Avalo Therapeutics Announces Inducement Grant to New Employee Under Nasdaq Listing Rule 5635(c)(4)

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