Avalo Therapeutics Announces Pricing of $375 Million Public Offering

Avalo Therapeutics (NASDAQ: AVTX) priced an underwritten public offering to raise approximately $375 million in gross proceeds by selling 19,730,000 shares of common stock and pre-funded warrants to purchase 1,400,000 shares.

Rhea-AI Summary

Avalo Therapeutics (NASDAQ: AVTX) priced an underwritten public offering to raise approximately $375 million in gross proceeds by selling 19,730,000 shares of common stock and pre-funded warrants to purchase 1,400,000 shares.

The offering price is $17.75 per share and $17.749 per pre-funded warrant; the underwriters have a 30-day option for up to 3,169,500 additional shares. Closing is expected May 7, 2026, subject to customary conditions. Net proceeds will fund Phase 3 development of abdakibart and general corporate purposes.

Positive

• Gross proceeds of approximately $375 million
• 19.73M common shares and 1.4M pre-funded warrants offered
• Proceeds earmarked to advance abdakibart Phase 3 and topline data
• Underwriters granted a 30-day option for up to 3,169,500 additional shares

Negative

• Issuance will cause shareholder dilution to existing holders
• Gross proceeds are before underwriting discounts, commissions and expenses
• Closing is subject to customary conditions and may not occur on May 7, 2026

Argus May 6 session

+34.13% close to close Open Argus

Details

News Market Reaction – AVTX

In the May 6 session, AVTX gained 34.13%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock surged +34.1% in the session following this news. A strong positive reaction aligns with A...

Analysis

The stock surged +34.1% in the session following this news. A strong positive reaction aligns with AVTX’s history of sharp moves after major updates, even on complex news. The company already had an effective S-3 shelf for up to $750,000,000, and this $375M offering taps that capacity. While added capital may support advancing abdakibart into registrational studies, investors have previously seen price swings that diverged from seemingly neutral events, suggesting sensitivity to positioning and deal terms.

Key Figures

Shares offered: 19,730,000 shares Pre-funded warrants: 1,400,000 warrants Offering price: $17.75 per share +5 more

Shares offered

19,730,000 shares

Common stock in May 2026 underwritten public offering

Pre-funded warrants

1,400,000 warrants

Pre-funded warrants issued in lieu of common stock to certain investors

Offering price

$17.75 per share

Public offering price for common stock

Pre-funded price

$17.749 per warrant

Public offering price for pre-funded warrants; $0.001 exercise price

Underwriter option

3,169,500 shares

30-day option for additional common shares on same terms

Gross proceeds

Approximately $375 million

Expected gross proceeds before fees, excluding underwriter option exercise

Shelf capacity

$750,000,000

Maximum amount under active shelf registration statement

Carried-forward shelf

$326,585,963

Previously registered but unsold securities under Rule 415(a)(6)

Historical Context

5 past events · Latest: Apr 28

5 events

1. Apr 28

   Milestone buyout deal

   24h Move

   -10.8%

   Replaced a $15M contingent Phase 3 milestone with smaller structured payments.

2. Mar 23

   Earnings and update

   24h Move

   +0.6%

   Reported 2025 results with $98.3M cash and higher R&D-driven net loss.

3. Feb 24

   Investor conferences

   24h Move

   +9.5%

   Announced March 2026 healthcare conference presentations and webcast availability.

4. Feb 18

   Inducement grants

   24h Move

   +6.5%

   Granted options for 82,000 shares at $14.26 to new employees.

5. Feb 04

   Investor conferences

   24h Move

   -10.0%

   Outlined February 2026 conference fireside chats and webcast access.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

underwritten public offering, pre-funded warrants, exercise price, shelf registration statement, +4 more

8 terms

underwritten public offering financial

"today announced the pricing of its underwritten public offering of 19,730,000 shares"

An underwritten public offering is when a company sells new shares of its stock to the public with the help of a financial firm, called an underwriter. The underwriter agrees to buy all the shares upfront, reducing the company's risk, and then sells them to investors. This process helps companies raise money quickly and confidently from a wide range of buyers.

pre-funded warrants financial

"in lieu of common stock to certain investors, pre-funded warrants to purchase 1,400,000"

Pre-funded warrants are financial instruments that give investors the right to purchase a company's stock at a set price, but with most or all of the purchase price paid upfront. They function like a coupon or gift card for stock, allowing investors to buy shares later at a fixed price, which can be beneficial if they want to avoid future price increases. This makes them important for investors seeking flexibility and certainty in their investment plans.

exercise price financial

"less the $0.001 per share exercise price for each pre-funded warrant"

The exercise price is the fixed amount at which you can buy or sell an asset, like a stock, when using an options contract. It matters because it helps determine whether exercising the option will be profitable or not, depending on the current market price. Think of it as the set price you agree on today to buy or sell later.

shelf registration statement regulatory

"offered pursuant to shelf registration statement on Form S-3 (No. 333-292614)"

A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.

form s-3 regulatory

"shelf registration statement on Form S-3 (No. 333-292614) that was filed"

Form S-3 is a legal document companies use to register their stock sales with the government, making it easier and faster for them to raise money by selling shares to investors. It’s like having a pre-approved shopping list that lets a company quickly sell new shares when they need funds, without going through a lengthy approval process each time.

prospectus supplement regulatory

"This offering is being made only by means of a prospectus supplement and an accompanying"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

rule 10b5-1 trading plan regulatory

"The sales were executed under a Rule 10b5-1 trading plan adopted on"

A Rule 10b5-1 trading plan is a pre-arranged schedule that allows company insiders to buy or sell stock at specific times, even if they have inside information. It helps prevent accusations of unfair trading by making these transactions look planned and transparent, rather than sneaky or illegal.

form 144 regulatory

"AVTX insider filed a Form 144 reporting a proposed sale of 16,915"

Form 144 is a document that investors must file with the government when they plan to sell a large number of shares of a company's stock. It helps ensure transparency so everyone knows how many shares are being sold and when, which can impact the stock's price.

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AI-generated analysis. How Rhea-AI works. Not financial advice.

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WAYNE, Pa., May 05, 2026 (GLOBE NEWSWIRE) -- Avalo Therapeutics, Inc. (NASDAQ: AVTX) (“Avalo”), a clinical-stage biotechnology company fully dedicated to developing IL-1β based treatments for immune-mediated inflammatory diseases, today announced the pricing of its underwritten public offering of 19,730,000 shares of common stock and, in lieu of common stock to certain investors, pre-funded warrants to purchase 1,400,000 shares of common stock. The shares of common stock are being sold at a public offering price of $17.75 per share and the pre-funded warrants are being sold at a public offering price of $17.749 per pre-funded warrant, which represents the per share public offering price of each share of common stock, less the $0.001 per share exercise price for each pre-funded warrant. In addition, Avalo has granted the underwriters a 30-day option to purchase up to an additional 3,169,500 shares of its common stock on the same terms and conditions. The gross proceeds to Avalo from the offering are expected to be approximately $375 million, before deducting underwriting discounts and commissions and offering expenses payable by Avalo and assuming no exercise of the underwriters’ option to purchase additional shares. All of the securities being sold in the offering are being offered by Avalo. The offering is expected to close on May 7, 2026, subject to the satisfaction of customary closing conditions.

Avalo intends to use the net proceeds from the offering, together with its existing cash, cash equivalents and short-term investments, to advance the clinical development of abdakibart, including through its Phase 3 topline data release, and for working capital and other general corporate purposes.

Leerink Partners, TD Cowen, BofA Securities, Piper Sandler and Cantor are acting as joint bookrunning managers for the offering.

The securities described above are being offered pursuant to shelf registration statement on Form S-3 (No. 333-292614) that was filed with the U.S. Securities and Exchange Commission (the “SEC”) on January 8, 2026, and was declared effective on January 20, 2026. This offering is being made only by means of a prospectus supplement and an accompanying prospectus that form a part of the registration statement.

The preliminary prospectus supplement and accompanying base prospectus relating to the offering were filed with the SEC on May 5, 2026. A final prospectus supplement related to and describing the terms of the offering will be filed with the SEC and will be available on the SEC’s website located at www.sec.gov. Copies of the final prospectus supplement and an accompanying prospectus related to the offering may also be obtained, when available, from Leerink Partners LLC, Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, or by telephone at (800) 808-7525 ext. 6105, or by email at syndicate@leerink.com; TD Securities (USA) LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at TDManualrequest@broadridge.com; and BofA Securities, Attention: Prospectus Department, 201 North Tryon Street, NC1-022-02-25 Charlotte, NC 28255- 0001, or by email at dg.prospectus_requests@bofa.com; Piper Sandler & Co., 350 North 5th Street, Suite 1000, Minneapolis, MN 55401, Attention: Prospectus Department, by telephone at (800) 747-3924, or by email at prospectus@psc.com; and Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York 10022 or by email at prospectus@cantor.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction.

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, abdakibart (AVTX-009), is an anti-IL-1β monoclonal antibody (mAb). Positive topline data was recently reported for abdakibart in a  Phase 2 clinical trial in hidradenitis suppurativa (HS). We’re also exploring additional opportunities to make an impact in prevalent indications that have significant remaining unmet needs.

Cautionary Note Regarding Forward-Looking Statements

Statements in this press release may contain “forward-looking statements” that are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions, and include, but are not limited to, statements regarding the expected gross proceeds from the offering, completion and timing of the public offering and the anticipated use of proceeds from the offering. Any forward-looking statements are based on Avalo’s current expectations, forecasts, and assumptions and are subject to a number of risks and uncertainties that could cause actual outcomes and results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties related to market conditions and satisfaction of customary closing conditions related to the public offering. For a discussion of other risks and uncertainties, and other important factors, any of which could cause Avalo’s actual results to differ from those contained in the forward-looking statements in this press release, see the section entitled “Risk Factors” in Avalo’s Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent periodic filings with the SEC, as well as in the prospectus supplement related to the public offering. Forward-looking statements contained in this press release are based on information available to Avalo as of the date hereof and are made only as of the date of this release. Avalo undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing Avalo’s views as of any date subsequent to the date of this press release. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of Avalo.

Investor & Media Contact: 

Christopher Sullivan, CFO
Avalo Therapeutics, Inc.
ir@avalotx.com
410-803-6793

Or

Meru Advisors
Lauren Glaser
lglaser@meruadvisors.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much is Avalo (AVTX) raising in the May 2026 public offering?

Avalo is raising approximately $375 million in gross proceeds from the offering. According to Avalo, this assumes no exercise of the underwriters' 30-day option and is before underwriting discounts, commissions and offering expenses.

What securities did Avalo (AVTX) offer and at what price on May 6, 2026?

Avalo offered 19,730,000 common shares and pre-funded warrants for 1,400,000 shares at $17.75 per share. According to Avalo, pre-funded warrants priced at $17.749 reflect a $0.001 exercise price per warrant.

When will the Avalo (AVTX) offering close and what are the conditions?

The offering is expected to close on May 7, 2026, subject to customary closing conditions. According to Avalo, closing remains conditional on satisfaction of customary underwriter and regulatory closing requirements.

How does Avalo (AVTX) plan to use the net proceeds from the offering?

Avalo intends to use net proceeds to advance abdakibart Phase 3 development, including a topline data release, and for working capital and general corporate purposes. According to Avalo, proceeds will be combined with existing cash and short-term investments.

Who are the joint bookrunning managers for Avalo's (AVTX) offering?

The joint bookrunning managers are Leerink Partners, TD Cowen, BofA Securities, Piper Sandler and Cantor. According to Avalo, these firms are coordinating the underwritten offering and syndicate distribution.

Does Avalo (AVTX) have an option to sell additional shares in the offering?

Yes. Avalo granted underwriters a 30-day option to purchase up to 3,169,500 additional shares on the same terms. According to Avalo, that option may increase gross proceeds if exercised in full.