WAYNE, Pa., May  05, 2026  (GLOBE NEWSWIRE) -- Avalo Therapeutics, Inc. (NASDAQ:AVTX) (&#34;Avalo&#34;), a clinical-stage biotechnology company fully dedicated to developing IL-1β based treatments for immune-mediated

AVTX

Avalo Therapeutics Announces Pricing of $375 Million Public Offering

Avalo Therapeutics Raises $375 Million for Clinical Development via Stock Offering

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  <section data-block="information">
    <h3>Information</h3>
    <p>WAYNE, Pa., May  05, 2026  (GLOBE NEWSWIRE) -- Avalo Therapeutics, Inc. (NASDAQ:AVTX) (&amp;#34;Avalo&amp;#34;), a clinical-stage biotechnology company fully dedicated to developing IL-1β based treatments for immune-mediated</p>
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  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>Avalo Therapeutics has priced a public offering of approximately 19.73 million shares at $17.75 each, raising around $375 million. The funds are designated to support the clinical development of abdakibart, ahead of key Phase 3 topline data, making this a critical development for investors to monitor.</p>
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  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>Avalo Therapeutics announced a public offering of 19.73 million shares.</li><li>Pricing set at $17.75 per share, raising approximately $375 million.</li><li>Proceeds will advance the clinical development of abdakibart.</li><li>Offering expected to close on May 7, 2026, pending customary conditions.</li><li>Underwriters hold a 30-day option for additional shares.</li></ul>
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  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>Leerink Partners</strong>: Joint bookrunning manager for the offering.</li><li><strong>BofA Securities (BAC)</strong>: Significant player in the underwriting process.</li><li><strong>Piper Sandler</strong>: Participating in the stock offering as a bookrunning manager.</li><li><strong>TD Cowen</strong>: Involved in managing the public offering.</li><li><strong>Cantor Fitzgerald</strong>: Also acts as a joint underwriter for the share offering.</li></ul>
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  <section data-block="category">
    <h3>Corporate Developments</h3>
    <p>This article falls under Corporate Developments, highlighting Avalo&#039;s strategic financing and development efforts. The public offering is critical as it provides necessary capital to advance clinical trials, specifically for abdakibart, thus signaling growth potential to investors.</p>
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  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>Investors should watch for stock price movement near the May 7 closing date.</li><li>Phase 3 topline results could significantly impact valuation and stock performance.</li><li>The underwriters&#039; purchase option may dilute existing shares, affecting shareholder value.</li></ul>
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  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Offering includes 19,730,000 shares and 1,400,000 pre-funded warrants.</li><li>Public offering price set at $17.75 per share.</li><li>Expected gross proceeds of approximately $375 million.</li><li>Closing of the offering anticipated on May 7, 2026.</li><li>Underwriters have a 30-day option for 3,169,500 additional shares.</li></ul>
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  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Invest in AVTX for potential upside as they advance abdakibart&#039;s clinical trials.</p>
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<link type="text/css" rel="stylesheet" href="https://www.globenewswire.com/styles/gnw_nitf.css"></link><p>WAYNE, Pa., May  05, 2026  (GLOBE NEWSWIRE) -- Avalo Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/AVTX">AVTX</a>) ("Avalo"), a clinical-stage biotechnology company fully dedicated to developing IL-1β based treatments for immune-mediated inflammatory diseases, today announced the pricing of its underwritten public offering of 19,730,000 shares of common stock and, in lieu of common stock to certain investors, pre-funded warrants to purchase 1,400,000 shares of common stock. The shares of common stock are being sold at a public offering price of $17.75 per share and the pre-funded warrants are being sold at a public offering price of $17.749 per pre-funded warrant, which represents the per share public offering price of each share of common stock, less the $0.001 per share exercise price for each pre-funded warrant. In addition, Avalo has granted the underwriters a 30-day option to purchase up to an additional 3,169,500 shares of its common stock on the same terms and conditions. The gross proceeds to Avalo from the offering are expected to be approximately $375 million, before deducting underwriting discounts and commissions and offering expenses payable by Avalo and assuming no exercise of the underwriters' option to purchase additional shares. All of the securities being sold in the offering are being offered by Avalo. The offering is expected to close on May 7, 2026, subject to the satisfaction of customary closing conditions.</p>  <p>Avalo intends to use the net proceeds from the offering, together with its existing cash, cash equivalents and short-term investments, to advance the clinical development of abdakibart, including through its Phase 3 topline data release, and for working capital and other general corporate purposes.</p>  <p>Leerink Partners, TD Cowen, BofA Securities, Piper Sandler and Cantor are acting as joint bookrunning managers for the offering.</p>  <p>The securities described above are being offered pursuant to shelf registration statement on Form S-3 (No. 333-292614) that was filed with the U.S. Securities and Exchange Commission (the "SEC") on January 8, 2026, and was declared effective on January 20, 2026. This offering is being made only by means of a prospectus supplement and an accompanying prospectus that form a part of the registration statement.</p>  <p>The preliminary prospectus supplement and accompanying base prospectus relating to the offering were filed with the SEC on May 5, 2026. A final prospectus supplement related to and describing the terms of the offering will be filed with the SEC and will be available on the SEC's website located at <a href="http://www.sec.gov" title="www.sec.gov">www.sec.gov</a>. Copies of the final prospectus supplement and an accompanying prospectus related to the offering may also be obtained, when available, from Leerink Partners LLC, Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, or by telephone at (800) 808-7525 ext. 6105, or by email at syndicate@leerink.com; TD Securities (USA) LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at TDManualrequest@broadridge.com; and BofA Securities, Attention: Prospectus Department, 201 North Tryon Street, NC1-022-02-25 Charlotte, NC 28255- 0001, or by email at dg.prospectus_requests@bofa.com; Piper Sandler &amp; Co., 350 North 5th Street, Suite 1000, Minneapolis, MN 55401, Attention: Prospectus Department, by telephone at (800) 747-3924, or by email at prospectus@psc.com; and Cantor Fitzgerald &amp; Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York 10022 or by email at <a href="mailto:prospectus@cantor.com">prospectus@cantor.com</a>.</p>  <p>This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction.</p>  <p><strong>About Avalo Therapeutics</strong></p>  <p>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 (AVTX-009), 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.</p>  <p><strong>Cautionary Note Regarding Forward-Looking Statements</strong></p>  <p>Statements in this press release may contain "forward-looking statements" that are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as "may," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential" or "continue" or the negative of these terms or other similar expressions, and include, but are not limited to, statements regarding the expected gross proceeds from the offering, completion and timing of the public offering and the anticipated use of proceeds from the offering. Any forward-looking statements are based on Avalo's current expectations, forecasts, and assumptions and are subject to a number of risks and uncertainties that could cause actual outcomes and results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties related to market conditions and satisfaction of customary closing conditions related to the public offering. For a discussion of other risks and uncertainties, and other important factors, any of which could cause Avalo's actual results to differ from those contained in the forward-looking statements in this press release, see the section entitled "Risk Factors" in Avalo's Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent periodic filings with the SEC, as well as in the prospectus supplement related to the public offering. Forward-looking statements contained in this press release are based on information available to Avalo as of the date hereof and are made only as of the date of this release. Avalo undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing Avalo's views as of any date subsequent to the date of this press release. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of Avalo.</p>  <p><strong>Investor &amp; Media Contact: </strong></p>  <p>Christopher Sullivan, CFO<br></br>Avalo Therapeutics, Inc.<br></br>ir@avalotx.com<br></br>410-803-6793</p>  <p><em>Or</em></p>  <p>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=OTcxNDA2OCM3NTg2MjI1IzIwMTkzMjA="></img> <br></br><img alt="" src="https://ml.globenewswire.com/media/ZTRiYTI2YzMtM2Y4ZS00MWRiLWJkMzktNTk2OWU1YTAyYjZiLTEwMzA4OTMtMjAyNi0wNS0wNi1lbg==/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 has priced a public offering of approximately 19.73 million shares at $17.75 each, raising around $375 million. The funds are designated to support the clinical development of abdakibart, ahead of key Phase 3 topline data, making this a critical development for investors to monitor.

Avalo Therapeutics Announces Pricing of $375 Million Public Offering

AI Summary

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Market-Moving

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