Avalo Enters into Agreement to Divest AVTX-800 Series
12 Setembro 2023 - 8:00AM
Avalo Therapeutics, Inc. (Nasdaq: AVTX), today announced it entered
into a purchase agreement (the Purchase Agreement) with AUG
Therapeutics, LLC (AUG) to sell its rights, title and interest in,
assets relating to AVTX-801 (D-galactose), AVTX-802
(D-mannose) and AVTX-803 (L-fucose) (collectively, the 800 Series).
AUG will pay an upfront payment of $150,000, as well as, for
each compound, make a contingent milestone payment of $15,000,000
(for a potential aggregate of $45 million) if the first Food and
Drug Administration (FDA) approval is for an indication other than
a Rare Pediatric Disease (as defined in the Purchase Agreement), or
up to 20% of certain payments, if any, granted to AUG upon any sale
of any priority review voucher (PRV) granted to AUG by the FDA, net
of any selling costs. Additionally, AUG will assume up to $150,000
of certain liabilities incurred prior to the date of the Purchase
Agreement and assume all costs relating to the 800 Series from the
date of the Purchase Agreement. The transaction is expected to
close in the fourth quarter of 2023, subject to customary closing
conditions, including obtaining certain third-party consents.
“We are excited to announce the transfer of our 800 series
programs for the treatment of congenital disorders of glycosylation
(CDGs) to AUG. In AUG’s hands, these programs could advance to
provide reliable treatments for patients in need. This
divestiture also reaffirms Avalo’s unwavering commitment to
executing our strategic focus on our immunology assets, which we
believe hold the greatest value and potential for our
shareholders,” stated Dr. Garry A. Neil, MD, Chief Executive
Officer, and Chairman of the Board at Avalo Therapeutics. “This
transaction will have an immediate positive impact on our cash flow
and reduce the utilization of our internal resources for non-core
assets, while also maintaining substantial upside potential for
Avalo upon program success.”
About Avalo Therapeutics
Avalo Therapeutics is a clinical stage biotechnology company
focused on the treatment of immune dysregulation by developing
therapies that target the LIGHT-signaling network.
LIGHT (Lymphotoxin-like,
exhibits Inducible expression, and competes
with HSV Glycoprotein D
for Herpesvirus Entry Mediator (HVEM), a
receptor expressed by T lymphocytes;
also referred to as TNFSF14) is an immunoregulatory cytokine. LIGHT
and its signaling receptors, HVEM (TNFRSF14), and lymphotoxin β
receptor (TNFRSF3), form an immune regulatory network with two
co-receptors of herpesvirus entry mediator, checkpoint inhibitor B
and T Lymphocyte Attenuator (BTLA), and CD160 (the LIGHT-signaling
network). Accumulating evidence points to the dysregulation of the
LIGHT-signaling network as a disease-driving mechanism in
autoimmune and inflammatory reactions in barrier organs. Therefore,
we believe reducing LIGHT levels can moderate immune dysregulation
in many acute and chronic inflammatory disorders.
For more information about Avalo, please
visit www.avalotx.com.
Forward-Looking Statements
This press release may include forward-looking statements made
pursuant to the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are statements that are not historical
facts. Such forward-looking statements are subject to significant
risks and uncertainties that are subject to change based on various
factors (many of which are beyond Avalo’s control), which could
cause actual results to differ from the forward-looking statements.
Such statements may include, without limitation, statements with
respect to Avalo’s plans, objectives, projections, expectations and
intentions and other statements identified by words such as
“projects,” “may,” “might,” “will,” “could,” “would,” “should,”
“continue,” “seeks,” “aims,” “predicts,” “believes,” “expects,”
“anticipates,” “estimates,” “intends,” “plans,” “potential,” or
similar expressions (including their use in the negative), or by
discussions of future matters such as: the future financial and
operational outlook; the development of product candidates or
products; timing and success of trial results and regulatory
review; potential attributes and benefits of product candidates;
and other statements that are not historical. These statements are
based upon the current beliefs and expectations of Avalo’s
management but are subject to significant risks and uncertainties,
including: risks that the transaction does not close; Avalo's debt
and cash position and the need for it to raise additional capital
in the near future; drug development costs, timing and other risks,
including reliance on investigators and enrollment of patients in
clinical trials, which might be slowed by COVID-19 or other
widespread health events; reliance on key personnel; regulatory
risks; general economic and market risks and uncertainties,
including those caused by COVID-19 or other widespread health
events; and those other risks detailed in Avalo’s filings with the
SEC. Actual results may differ from those set forth in the
forward-looking statements. Except as required by applicable law,
Avalo expressly disclaims any obligations or undertaking to release
publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in Avalo’s expectations with
respect thereto or any change in events, conditions or
circumstances on which any statement is based.
For media and investor inquiries
Christopher Sullivan, CFO Avalo Therapeutics,
Inc.ir@avalotx.com410-803-6793
or
Chris BrinzeyICR
WestwickeChris.brinzey@westwicke.com339-970-2843
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