Avalo Enhances Change-in-Control Terms for All Four C-Suite Executives
Coc Protection Update
Company Background
Avalo Therapeutics is a clinical-stage biotech company developing IL-1β inhibitors for immune-mediated inflammatory diseases. Its lead asset, abdakibart (AVTX-009), met the primary endpoint of its Phase 2 LOTUS trial on May 5, 2026, showing HiSCR75 response rates of 42.2% and 42.9% at the two dose levels versus 25.6% for placebo in 253 adults with moderate to severe hidradenitis suppurativa. The company plans to advance the drug into a registrational Phase 3 program.
Immediately following the data readout, Avalo completed a public equity offering on May 7, 2026, raising approximately $405 million in net proceeds. Combined with $82 million already on hand as of March 31, 2026, management estimated the combined cash position would fund operations into 2029. The company has no product revenue to speak of — full-year 2025 net product revenue was $59,000 — and reported a net loss of $78.3 million for 2025, up from $35.1 million the prior year, driven primarily by Phase 2 trial costs.
What Was Disclosed
On June 12, 2026, Avalo amended employment agreements with CEO Garry Neil, CFO Christopher Sullivan, CMO Mittie Doyle, and Chief Business Officer Taylor Boyd to add or enhance severance and change-in-control protections. In the event of a termination without cause or for good reason outside a change-in-control window, each executive is entitled to 12 months of base salary in substantially equal installments — 18 months for Neil — plus payment of any prior-year unpaid bonus, a prorated current-year bonus, and company-paid COBRA premiums. Options granted before June 12, 2026 vest in full on such a termination.