Avalo Therapeutics, Inc. acquired AlmataBio, Inc. for $42.5 million.
March 27, 2024
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Avalo Therapeutics, Inc. (NasdaqCM:AVTX) acquired AlmataBio, Inc. for $42.5 million on March 27, 2024. The consideration for the Merger combines of 0.171605 million common stock and 0.002412 of Series C Preferred Stock. The acquisition was approved by the Board of Directors of Avalo Therapeutics and by the Board of Directors and stockholders of AlmataBio, Inc. The closings of the transactions are not subject to the approval of Avalo stockholders. Goodwin Procter LLP acted as a legal advisor to AlmataBio.
Avalo Therapeutics, Inc. (NasdaqCM:AVTX) completed the acquisition of AlmataBio, Inc. on March 27, 2024. Avalo will make a cash payment of $7.5 million due to the former AlmataBio stockholders upon the initial closing of the private placement investment, which closed on March 28, 2024. Further, a portion of the consideration for the Almata Transaction includes development milestones to the former AlmataBio stockholders including $5 million due upon the first patient dosed in a Phase 2 trial in patients with hidradenitis suppurativa for AVTX-009 and $15 million due upon the first patient dosed in a Phase 3 trial for AVTX-009, both of which are payable in cash or stock of Avalo (or a combination thereof) at the election of the former AlmataBio stockholders.
Avalo Therapeutics, Inc. is a clinical-stage biotechnology company focused on the treatment of immune dysregulation. The Company's lead asset is AVTX-009, an anti-IL-1β mAb, targeting inflammatory diseases. Its pipeline also includes quisovalimab (AVTX-002) (anti-LIGHT monoclonal antibody (mAb)) and AVTX-008 (BTLA agonist fusion protein). AVTX-009 is a humanized monoclonal antibody (IgG4) that binds to interleukin-1β (IL-1β) with high affinity and neutralizes its activity. IL-1β is a central driver in the inflammatory process. Quisovalimab shows reduction of Lymphotoxin-like, exhibits Inducible expression, and competes with HSV Glycoprotein D for Herpesvirus Entry Mediator (HVEM), a receptor expressed by T lymphocytes (LIGHT) levels, as well as a favorable safety and tolerability profile, in all indications studied including COVID-19 acute respiratory distress syndrome (ARDS), Crohn's Disease, and non-eosinophilic asthma (NEA).
AVALO THERAPEUTICS, INC. 
