Avalo Therapeutics, Inc. is a clinical stage biotechnology company fully dedicated to developing IL-1β-based treatments for immune-mediated inflammatory diseases. The company's primary focus is on advancing its lead product candidate, abdakibart (AVTX-009), a high-affinity, highly potent humanized IgG monoclonal antibody designed to specifically inhibit IL-1β and block downstream inflammatory pathways. Abdakibart (AVTX-009) is currently being studied in the Phase 2 LOTUS trial for hidradenitis suppurativa (HS), with topline data expected in the second quarter of 2026. The company is also exploring additional opportunities to expand the pipeline for prevalent indications with significant unmet needs in the immune-mediated inflammatory disease space.

Avalo Therapeutics, Inc. generates revenue primarily through the potential future commercialization of its product candidates, notably abdakibart (AVTX-009), should they receive regulatory approval. As a clinical-stage company, it does not currently generate product revenue and relies on financing activities, including equity offerings and strategic partnerships, to fund its research and development operations. The company's revenue model is centered on developing biologics that target key inflammatory pathways, with the intention of commercializing approved products either independently or through licensing agreements with larger pharmaceutical partners. Revenue generation is contingent upon successful clinical development, regulatory approval, and market acceptance of its therapeutic candidates.

The company operates through the following segments:

• Research and Development: This segment encompasses all activities related to the discovery, preclinical development, and clinical advancement of product candidates targeting immune-mediated inflammatory diseases. It includes the design and execution of clinical trials such as the LOTUS Phase 2 trial for abdakibart (AVTX-009) in hidradenitis suppurativa, as well as exploratory work on additional indications for IL-1β inhibition. The segment also manages intellectual property efforts, including patent applications and trade secret protection for its biologic assets. Abdakibart (AVTX-009) is the lead product candidate under this segment, with supporting legacy programs such as Quisovalimab (AVTX-002), AVTX-006, AVTX-008, and AVTX-913 currently not being actively pursued.

• Business Development and Licensing: This segment focuses on acquiring, in-licensing, and out-licensing rights to complementary preclinical and clinical stage compounds that treat immune-mediated inflammatory diseases. It manages strategic partnerships, including the worldwide exclusive license from Eli Lilly and Company for abdakibart (AVTX-009) under the Lilly License Agreement, and the rights obtained through the acquisition of AlmataBio, Inc. in the first quarter of 2024. The segment is responsible for negotiating milestones, royalties, and other financial obligations under licensing agreements, as well as evaluating opportunistic out-licensing of rights to compounds, indications, or geographies to maximize shareholder value.

Avalo Therapeutics, Inc. operates in a highly competitive segment of the biotechnology industry focused on biologics for immune-mediated inflammatory diseases. The company faces competition from large pharmaceutical firms such as Novartis AG, which markets ILARIS® (canakinumab), an approved IL-1β blocker, as well as AbbVie, Lilly, Merck, Pfizer, Sanofi, Takeda, and UCB, many of which have established products targeting HS and related conditions. Competitive advantages include the potential best-in-class profile of abdakibart (AVTX-009), its high affinity and potency in neutralizing IL-1β, and the opportunity to leverage biologics regulatory exclusivity—up to twelve years in the United States and potentially up to eleven years in Europe—following FDA approval, which may provide market protection even as the composition of matter patent expired in February 2026. The company's focus on a well-validated target with a known safety profile from approved IL-1β inhibitors enhances its differentiation in a crowded landscape.

Avalo Therapeutics, Inc. serves patients suffering from immune-mediated inflammatory diseases, with its current clinical focus on individuals with moderate to severe hidradenitis suppurativa (HS). The company's therapeutic candidates are intended for use by patients under the care of dermatologists and other specialists managing chronic inflammatory skin conditions. While specific customer names are not disclosed due to the preclinical and clinical stage of its products, the end users are patients seeking treatment for debilitating conditions such as HS, which affects an estimated 0.7–1.2% of the U. S. population, with projections indicating a rise to 3.5 million affected individuals by 2035. The company aims to address significant unmet needs in this patient population through the development of effective and durable treatment options.