Avalo Therapeutics, a pioneering biotechnology company dedicated to the development of innovative treatments for immunological diseases, announced today the successful completion of the divestiture of its rights, title, and interest in assets pertaining to AVTX-801 (D-galactose), AVTX-802 (D-mannose), and AVTX-803 (L-fucose) collectively known as the 800 Series, to AUG Therapeutics, LLC (AUG). This strategic move is poised to drive advancements in the treatment of congenital disorders of glycosylation (CDGs).
Following the announcement, Avalo Therapeutics experienced a surge in its stock value, indicating positive investor sentiment towards the strategic move.
At the time of this publication, Avalo Therapeutics Inc stock (AVTX) has witnessed a surge.
Avalo Therapeutics Inc
Current Price: $0.11
Change : +0.01
Change (%): (13.52%)
Volume: 72.3M
Source: Tomorrow Events Market Data
The transaction, first unveiled in a purchase agreement on September 12, 2023, saw AUG make an upfront payment of $150,000. Additionally, for each compound, AUG has committed to a contingent milestone payment of $15,000,000, potentially totaling $45 million, contingent upon the first Food and Drug Administration (FDA) approval being for an indication other than a Rare Pediatric Disease as defined in the Purchase Agreement. Furthermore, AUG stands to receive up to 20% of select payments resulting from the sale of any priority review voucher (PRV) granted by the FDA to AUG, net of any associated selling costs. AUG also undertook $150,000 in specific liabilities incurred prior to the Purchase Agreement date and assumed all costs associated with the 800 Series from that point forward.
Dr. Garry A. Neil, MD, Chief Executive Officer, and Chairman of the Board at Avalo Therapeutics expressed enthusiasm about the development, stating, “We are excited to announce that we have closed the transaction with AUG to divest our 800 Series programs for the treatment of congenital disorders of glycosylation (CDGs). In AUG’s hands, these programs could advance to provide reliable treatments for patients in need.”
Dr. Neil emphasized the strategic implications of the transaction, highlighting the company’s renewed focus on its immunology assets. He stated, “Our pipeline is now fully focused on our promising immunology assets, reaffirming Avalo’s unwavering commitment to execute its strategy of addressing unmet medical needs to patients suffering from immunological diseases, which we believe will derive the greatest value and potential for our shareholders. This transaction has an immediate positive impact on our cash flow and focuses the team fully on our core immunology assets, while also maintaining substantial upside potential for Avalo upon program success.”
This divestiture marks a significant milestone in Avalo Therapeutics’ strategic realignment towards its core areas of focus, promising a more robust approach to addressing pressing medical needs in the realm of immunological diseases.
