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Avalo Therapeutics (NASDAQ: AVTX) CLO executes 10b5-1 option exercises and share sales

Filing Impact
(Neutral)
Filing Sentiment
(Neutral)
Form Type
4

Rhea-AI Filing Summary

Avalo Therapeutics Chief Legal Officer Paul Varki reported a mix of option exercises and share sales in Avalo Therapeutics, Inc. common stock. On May 6, 2026, he exercised stock options to acquire a total of 75,063 shares of common stock at exercise prices of $8.04 and $13.43 per share.

On the same date, he sold 75,063 shares of common stock in open-market transactions at prices ranging from $18.50 to $22.88 per share. The filing states these transactions were carried out under a pre-arranged Rule 10b5-1 trading plan, indicating they were scheduled in advance as part of a trading program.

Positive

  • None.

Negative

  • None.
Insider VARKI PAUL
Role Chief Legal Officer
Sold 75,063 shs ($1.51M)
Type Security Shares Price Value
Exercise Stock Option (Right to Buy) 62,500 $0.00 --
Exercise Stock Option (Right to Buy) 12,563 $0.00 --
Exercise Common Stock 62,500 $13.43 $839K
Exercise Common Stock 12,563 $8.04 $101K
Sale Common Stock 37,375 $18.912 $707K
Sale Common Stock 5,196 $19.7812 $103K
Sale Common Stock 22,839 $21.2155 $485K
Sale Common Stock 9,253 $22.6985 $210K
Sale Common Stock 400 $23.71 $9K
Holdings After Transaction: Stock Option (Right to Buy) — 87,500 shares (Direct, null); Common Stock — 66,134 shares (Direct, null)
Footnotes (1)
  1. The transactions reported in this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on November 12, 2025. The reported securities were sold in multiple transactions at prices ranging from $18.50 to $19.495. The Reporting Person undertakes to provide to the Issuer, any security holder of the Issuer or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within such range. The reported securities were sold in multiple transactions at prices ranging from $19.50 to $19.99. The Reporting Person undertakes to provide to the Issuer, any security holder of the Issuer or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within such range. The reported securities were sold in multiple transactions at prices ranging from $20.75 to $21.69. The Reporting Person undertakes to provide to the Issuer, any security holder of the Issuer or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within such range. The reported securities were sold in multiple transactions at prices ranging from $22.15 to $22.88. The Reporting Person undertakes to provide to the Issuer, any security holder of the Issuer or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within such range. Twenty-five percent (25%) of the Option Shares vest on June 24, 2025 and the remainder of the Option Shares will vest in equal monthly installments on the first day of each month thereafter over the following three (3) years, provided that Optionee remains an employee of the Company on each such vesting date. The stock option vests twenty-five percent (25%) on January 28, 2026 and the remainder will vest in equal monthly installments over the following three (3) years, subject to the Reporting Person's continued service on such vesting date.
Shares sold 75,063 shares Total common shares sold in open-market transactions on May 6, 2026
Options exercised 75,063 shares Total common shares acquired via option exercises on May 6, 2026
Sale price range $18.50–$22.88 per share Price ranges disclosed for multiple sale transactions
Option strike price $8.04 per share Exercise price for one stock option (Right to Buy) series
Option strike price $13.43 per share Exercise price for another stock option (Right to Buy) series
Rule 10b5-1 plan adoption date November 12, 2025 Date the pre-arranged trading plan governing these transactions was adopted
Rule 10b5-1 trading plan regulatory
"The transactions reported in this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted"
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.
Stock Option (Right to Buy) financial
"security_title": "Stock Option (Right to Buy)""
derivative security financial
"transaction_code_description": "Exercise or conversion of derivative security""
A derivative security is a financial contract whose value comes from the price or performance of something else, such as a stock, bond, commodity, or market index. For investors it acts like an insurance policy or a wager: it can be used to protect against losses, lock in prices, or amplify gains and losses, so it can change a portfolio’s risk and potential return without owning the underlying asset directly.
open-market sale financial
"transaction_action": "open-market sale""
An open-market sale is when a shareholder sells existing shares directly on a public exchange to any willing buyer, rather than through a private deal. Think of it like putting goods on a busy market stall where price is set by supply and demand; for investors it matters because such sales increase available supply, can put short-term downward pressure on the stock price, and signal changes in liquidity or investor confidence.
exercise or conversion financial
"transaction_action": "derivative exercise/conversion""
SEC Form 4
FORM 4UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940
OMB APPROVAL
OMB Number:3235-0287
Estimated average burden
hours per response:0.5
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
X
Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.
1. Name and Address of Reporting Person*
VARKI PAUL

(Last)(First)(Middle)
C/O AVALO THERAPEUTICS, INC.
1500 LIBERTY RIDGE DRIVE, SUITE 321

(Street)
WAYNE PENNSYLVANIA 19087

(City)(State)(Zip)

UNITED STATES

(Country)
2. Issuer Name and Ticker or Trading Symbol
Avalo Therapeutics, Inc. [ AVTX ]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
Director10% Owner
XOfficer (give title below)Other (specify below)
Chief Legal Officer
2a. Foreign Trading Symbol
3. Date of Earliest Transaction (Month/Day/Year)
05/06/2026
6. Individual or Joint/Group Filing (Check Applicable Line)
XForm filed by One Reporting Person
Form filed by More than One Reporting Person
4. If Amendment, Date of Original Filed (Month/Day/Year)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year)2A. Deemed Execution Date, if any (Month/Day/Year)3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
CodeVAmount(A) or (D)Price
Common Stock05/06/2026M(1)62,500A$13.4366,134D
Common Stock05/06/2026M(1)12,563A$8.0478,697D
Common Stock05/06/2026S(1)37,375D$18.912(2)41,322D
Common Stock05/06/2026S(1)5,196D$19.7812(3)36,126D
Common Stock05/06/2026S(1)22,839D$21.2155(4)13,287D
Common Stock05/06/2026S(1)9,253D$22.6985(5)4,034D
Common Stock05/06/2026S(1)400D$23.713,634D
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year)3A. Deemed Execution Date, if any (Month/Day/Year)4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 6. Date Exercisable and Expiration Date (Month/Day/Year)7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4)
CodeV(A)(D)Date ExercisableExpiration DateTitleAmount or Number of Shares
Stock Option (Right to Buy)$13.4305/06/2026M(1)62,500 (6)06/24/2034Common Stock62,500$087,500D
Stock Option (Right to Buy)$8.0405/06/2026M(1)12,563 (7)01/28/2035Common Stock12,563$087,437D
Explanation of Responses:
1. The transactions reported in this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on November 12, 2025.
2. The reported securities were sold in multiple transactions at prices ranging from $18.50 to $19.495. The Reporting Person undertakes to provide to the Issuer, any security holder of the Issuer or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within such range.
3. The reported securities were sold in multiple transactions at prices ranging from $19.50 to $19.99. The Reporting Person undertakes to provide to the Issuer, any security holder of the Issuer or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within such range.
4. The reported securities were sold in multiple transactions at prices ranging from $20.75 to $21.69. The Reporting Person undertakes to provide to the Issuer, any security holder of the Issuer or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within such range.
5. The reported securities were sold in multiple transactions at prices ranging from $22.15 to $22.88. The Reporting Person undertakes to provide to the Issuer, any security holder of the Issuer or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within such range.
6. Twenty-five percent (25%) of the Option Shares vest on June 24, 2025 and the remainder of the Option Shares will vest in equal monthly installments on the first day of each month thereafter over the following three (3) years, provided that Optionee remains an employee of the Company on each such vesting date.
7. The stock option vests twenty-five percent (25%) on January 28, 2026 and the remainder will vest in equal monthly installments over the following three (3) years, subject to the Reporting Person's continued service on such vesting date.
/s/ Christopher Sullivan, Attorney-in-Fact05/07/2026
** Signature of Reporting PersonDate
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.
* Form 4: SEC 1474 (03-26)

FAQ

How many Avalo Therapeutics (AVTX) shares did the insider sell and at what prices?

The filing shows sales of 75,063 shares of Avalo Therapeutics common stock. These shares were sold in multiple open-market transactions at prices ranging from $18.50 to $22.88 per share, reflecting different sale prices within that disclosed range.

What stock options did the Avalo Therapeutics (AVTX) insider exercise?

Paul Varki exercised stock options covering 75,063 shares of Avalo Therapeutics common stock. The options had exercise prices of $8.04 and $13.43 per share, converting derivative securities into common shares as part of his compensation-related holdings.

Were the AVTX insider’s trades made under a Rule 10b5-1 plan?

Yes. The filing states the transactions were effected pursuant to a Rule 10b5-1 trading plan adopted on November 12, 2025. Such plans pre-schedule trades, indicating these sales and exercises followed a pre-arranged trading program instead of ad hoc decisions.

What does the Avalo Therapeutics (AVTX) Form 4 say about price ranges of the sales?

The Form 4 notes the reported shares were sold in multiple transactions. Sale prices ranged from $18.50 to $22.88 per share across several blocks, and the insider undertook to provide detailed trade-by-trade price information upon request.

Did the Avalo Therapeutics (AVTX) Form 4 involve derivative securities?

Yes. The filing lists Stock Option (Right to Buy) positions as derivative securities. These options were exercised to acquire common stock, with exercise prices of $8.04 and $13.43, and expiration dates in 2034 and 2035, respectively.