Avalo Therapeutics, Inc. (Nasdaq: AVTX) announced its financial results for the year ended December 31, 2025, revealing a net loss of $78.3 million, compared to a net loss of $35.1 million in 2024. The increase in losses was primarily driven by a significant rise in research and development expenses, which totaled $50.1 million, reflecting a $25.6 million increase from the previous year. This increase is attributed to costs associated with the ongoing Phase 2 LOTUS trial of abdakibart (AVTX-009) for the treatment of hidradenitis suppurativa. Despite the losses, Avalo reported cash, cash equivalents, and short-term investments of approximately $98 million as of December 31, 2025, which is expected to fund operations into 2028. The company is anticipating topline data from the LOTUS trial in the second quarter of 2026, which could be a pivotal moment for the company, as it seeks to address the unmet needs of patients suffering from this chronic inflammatory skin disease. CEO Dr. Garry Neil expressed optimism about the upcoming data release, highlighting the potential of abdakibart to demonstrate significant efficacy in treating hidradenitis suppurativa. The financial results and the upcoming trial data are crucial for Avalo as it navigates its path forward in the competitive biotech landscape.

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