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Breaking: Asset Sale Deal Ignites Avalo Therapeutics

  • September 12th, 2023
  • 330 views

Shares of Avalo Therapeutics, Inc. (Nasdaq: AVTX) surged by more than 40% following the company's announcement of a purchase agreement with AUG Therapeutics, LLC (AUG), wherein it will sell its rights, assets, and interests related to the 800 Series compounds — AVTX-801 (D-galactose), AVTX-802 (D-mannose), and AVTX-803 (L-fucose) -.

As part of the deal, AUG will provide an upfront payment of $150,000 and may make contingent milestone payments of up to $45 million upon FDA approval, excluding Rare Pediatric Disease indications. Additionally, AUG will assume certain liabilities and all costs associated with the 800 Series. The transaction is anticipated to close in Q4 2023, subject to customary conditions.

Avalo Therapeutics anticipates that this move will immediately boost its cash flow and reduce resource utilization for non-core assets, while still holding significant potential for the company upon program success.

In pre-market, $AVTX was trading at $0.13, marking a notable gain of $0.04 (+54.06%).

 

THIS IS NOT A RECOMMENDATION TO BUY OR SELL ANY SECURITY OR DIGITAL ASSET. Please consult with a professional investment advisor before purchasing or selling any securities viewed on or mentioned herein. (Read Full Disclaimer)

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