Myriam Alvarez 3.66K Followers

Summary

Avalo Therapeutics' positive LOTUS results now support a pivotal trial, and its monthly dosing gives it a potential differentiating factor in HS.

Their balance sheet has enough runway to meet their upcoming milestones as well.

AVTX-010 offers follow-on potential, but its planned IND submission means that it's still years away from becoming a meaningful value driver for AVTX.

In my view, Lutikizumab's modest Phase 3 benefit does challenge Abdakibart to some extent, which is why I don't rate the stock a "Strong Buy" yet.

But, on balance, I think AVTX's recent pullback is a nice entry price for investors willing to bet on Abdakibart's potential.

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Avalo Therapeutics, Inc. (AVTX) develops antibody treatments for inflammatory diseases. In my view, Abdakibart is their lead candidate and targets hidradenitis suppurativa (HS).…