Avalo Therapeutics Announces Inducement Grants to New Employees Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Avalo Therapeutics (Nasdaq: AVTX) announced inducement equity awards under Nasdaq Listing Rule 5635(c)(4) for three newly hired employees totaling 114,000 nonstatutory stock options.

The Options were granted on Nov 4, Nov 10, and Nov 17, 2025 and break down as 24,000, 72,000, and 18,000 shares respectively. Exercise prices are set equal to the closing price on each grant date. Vesting is over 4 years with 25% vesting at the one-year anniversary and the remainder vesting monthly over 36 months, subject to continued service. Awards are governed by Avalo’s 2025 Inducement Award Plan and individual option agreements.

WAYNE, Pa., Nov. 17, 2025 (GLOBE NEWSWIRE) -- Avalo Therapeutics, Inc. (Nasdaq: AVTX), a clinical stage biotechnology company fully dedicated to developing IL-1β-based treatments for immune-mediated inflammatory diseases, today announced the grant of inducement equity awards to three new employees. The Compensation Committee of the Board of Directors of Avalo approved the grants of nonstatutory stock options to purchase an aggregate of 114,000 shares of common stock (the “Options”) as inducements material to the employees entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).

The Options were granted on November 4, November 10, and November 17, 2025, and entitle the recipients to purchase 24,000 shares of common stock, 72,000 shares of common stock, and 18,000 shares of common stock, respectively, at an exercise price per share equal to the closing price on the respective date on which the Option was granted. The Options will vest over four years, with 25% of the underlying shares vesting on the one-year anniversary of each employee’s respective start date, and the balance of the underlying shares vesting monthly thereafter over 36 months, subject to the new employee’s continued service relationship with Avalo through the applicable vesting dates. The Options are subject to the terms and conditions of Avalo’s 2025 Inducement Award Plan and the terms and conditions of an applicable stock option agreement covering the grant.

About Avalo Therapeutics

Avalo Therapeutics is a clinical stage biotechnology company fully dedicated to developing IL-1β-based treatments for immune-mediated inflammatory diseases. Our lead asset, AVTX-009, is in a Phase 2 clinical trial for hidradenitis suppurativa (HS). We’re also exploring additional opportunities to make an impact in prevalent indications that have significant remaining unmet needs. For more information about Avalo, please visit www.avalotx.com. 

About AVTX-009

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 pro-inflammatory cytokine that plays a central role in the pathogenesis of a wide range of human diseases.1 It activates immune cells that generate proinflammatory cytokines, including IL-6, TNF-α, and IL-17. Dysregulated IL-1β signaling is a major driver of inflammation, contributing to the progression of autoimmune disorders. IL-1β inhibition has proven effective in multiple immune-mediated inflammatory diseases.1-3

References:1Dinarello CA. Immunol Rev. 2018;281(1):8-27. 2Kany S et al. Int J Mol Sci. 2019;20(23):6008. 3Kimball AB et al. Presented at: American Academy of Dermatology; March 8-12, 2024; San Diego, CA.

Forward-Looking Statements

This press release may include forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond Avalo’s control), which could cause actual results to differ from the forward-looking statements. Such statements may include, without limitation, statements with respect to Avalo’s plans, objectives, projections, expectations and intentions and other statements identified by words such as “projects,” “may,” “might,” “will,” “could,” “would,” “should,” “continue,” “seeks,” “aims,” “predicts,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “potential,” or similar expressions (including their use in the negative), or by discussions of future matters such as: drug development costs, timing of trials and trial results and other risks, including reliance on investigators and enrollment of patients in clinical trials; reliance on key personnel; regulatory risks; general economic and market risks and uncertainties, including those caused by the war in Ukraine and the Middle East; and those other risks detailed in Avalo’s filings with the Securities and Exchange Commission, available at www.sec.gov. Actual results may differ from those set forth in the forward-looking statements. Except as required by applicable law, Avalo expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Avalo’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

For media and investor inquiries
Christopher Sullivan, CFO
Avalo Therapeutics, Inc.
ir@avalotx.com
410-803-6793

or

Meru Advisors
Lauren Glaser
lglaser@meruadvisors.com

FAQ

What did Avalo Therapeutics (AVTX) announce on November 17, 2025 about employee equity?

Avalo announced inducement grants of 114,000 nonstatutory stock options to three new employees under Nasdaq Rule 5635(c)(4).

How are the 114,000 AVTX options allocated across the three grants and dates?

The grants were 24,000 (Nov 4, 2025), 72,000 (Nov 10, 2025), and 18,000 (Nov 17, 2025).

What is the exercise price and vesting schedule for the AVTX inducement options?

Exercise price equals the closing price on each grant date; vesting is over 4 years with 25% after one year and monthly vesting over 36 months thereafter.

Under which plan were Avalo’s Nov 2025 inducement options granted?

The options are subject to Avalo’s 2025 Inducement Award Plan and the applicable stock option agreements.

Do Avalo’s inducement option grants on Nov 17, 2025 immediately dilute AVTX shareholders?

The company granted options to purchase 114,000 shares; actual dilution occurs only if and when options are exercised.

Why was Nasdaq Listing Rule 5635(c)(4) referenced in Avalo’s AVTX announcement?

Rule 5635(c)(4) permits Nasdaq-listed companies to grant equity inducements to new employees when approved as material inducements to employment.