Avalo Therapeutics (NASDAQ:AVTX), a clinical-stage biotechnology company focused on developing interleukin-1β (IL-1β)-targeting therapies for immune-mediated inflammatory diseases, reported its financial results for the full year ended December 31, 2025.
The company ended the year with $98.3 million in cash, cash equivalents and short-term investments, which it expects to fund operations into 2028.
Research and development expenses increased to $50.1 million in 2025 from prior-year levels, reflecting advancement of the company's clinical pipeline.
The net loss widened to $78.3 million for 2025, compared with $35.1 million in 2024, due to higher R&D spending and the impact of nonrecurring items in the prior year.
Avalo's lead candidate, abdakibart (AVTX-009), is a humanized IgG4 monoclonal antibody that binds with high affinity to IL-1β and neutralizes its activity.
The company is evaluating the therapy in the Phase 2 LOTUS trial, a randomized, double-blind, placebo-controlled study that enrolled approximately 250 adults with moderate to severe hidradenitis suppurativa (HS).
The trial assesses the efficacy and safety of subcutaneous bi-weekly and monthly dosing regimens compared with placebo, using HiSCR75 as the primary endpoint.
Topline data from the study are anticipated in the second quarter of 2026.