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Avalo Therapeutics Inc. (AVTX-6.92%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's financial performance, including a net loss of $35.1 million for the year, an increase from the previous year's net loss of $31.5 million. The increase in net loss is attributed to higher operating expenses, including a $27.6 million charge for acquired in-process research and development related to the acquisition of AlmataBio, Inc.
Avalo reported cash and cash equivalents of $134.5 million as of December 31, 2024, a significant increase from $7.4 million at the end of 2023. This increase was primarily due to net proceeds from a private placement and the exercise of warrants, totaling approximately $175.8 million.
Research and development expenses increased to $24.4 million, driven by costs associated with the development of AVTX-009, including trial initiation and manufacturing expenses. General and administrative expenses also rose to $17.2 million, reflecting higher compensation and professional fees.
The company recognized a $121.6 million gain from the change in fair value of warrant liabilities, offset by a $79.3 million loss on the initial fair value of warrants issued in the private placement. This financial activity was a significant factor in the company's other income for the year.
Avalo's strategic focus remains on the development of AVTX-009, an anti-IL-1β monoclonal antibody targeting inflammatory diseases. The company commenced a Phase 2 clinical trial for AVTX-009 in October 2024, with plans to explore additional indications for the drug.
The filing also outlines Avalo's expectations for increased research and development expenditures in 2025, as the company advances its clinical programs and explores potential partnerships or out-licensing opportunities.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Avalo Therapeutics Inc. annual 10-K report dated March 20, 2025. To report an error, please email earnings@qz.com.