Business
Avalo Sells Economic Rights to Previously Out-Licensed Assets for $5 Million
WAYNE, Pa. and ROCKVILLE, Md., Nov. 07, 2022 (GLOBE NEWSWIRE) -- Avalo Therapeutics, Inc. (Nasdaq: AVTX), today announced it entered into a purchase agreement
About this update from Avalo Therapeutics, Inc.
[{"type":"text","content":"WAYNE, Pa. and ROCKVILLE, Md., Nov. 07, 2022 (GLOBE NEWSWIRE) -- Avalo Therapeutics, Inc. (Nasdaq: AVTX), today announced it entered into a purchase agreement to sell its economic rights to future payments for previously out-licensed assets including AVTX-007, AVTX-501, and AVTX-611 to ES Therapeutics, LLC (ES) in exchange for $5.0 million. The sale is expected to close in November. “This transaction will strengthen our balance sheet and further demonstrates the execution of our strategy to utilize business development to fund our core programs,” said Garry A. Neil, MD, Chief Executive Officer and Chairman of the Board of Avalo Therapeutics. “Once completed, we will have raised $20 million of nondilutive funding since August. These transactions meaningfully improve our financial position and support our lead asset, AVTX-002, which remains on track to deliver data from our Phase 2 PEAK trial in non-eosinophilic asthma in the first half of next year.” Pursuant to the purchase agreement, at the closing of the transaction Avalo (i) will sell to ES all of Avalo’s (a) rights to any milestone payments under the Asset Purchase Agreement, dated August 14, 2017, by and between Avalo and Janssen Pharmaceuticals, Inc. (relating to AVTX-501), and (b) any future milestone and royalty payments under the License Agreement, dated July 29, 2022, by and between Apollo AP43 Limited and Avalo (relating to AVTX-007), and (ii) will waive all rights, including all payments due to Avalo from ES, under the Assignment of License Agreement, dated August 8, 2019 (relating to AVTX-406), by and among Avalo, ES and Armistice Capital Master Fund Ltd (Armistice). The purchase agreement contains customary representations and warranties and covenants of the Company and ES. ES is an affiliate of Armistice, which is a significant stockholder of the Company. About AVTX-002 AVTX-002 is a fully human monoclonal antibody, directed against human LIGHT (Lymphotoxin-like, exhibits Inducible expression, and competes with Herpes Virus Glycoprotein D for Herpesvirus Entry Mediator (HVEM), a receptor expressed by T lymphocytes). AVTX-002 is currently in Phase 2 development for non-eosinophilic asthma (PEAK trial) with proof-of-concept data in inflammatory bowel diseases and COVID-19 acute respiratory distress syndrome. About AVTX-002 PEAK Trial The Phase 2 PEAK trial (n=approx...