Avalo Therapeutics appoints Dr. Rita Jain to board of directors

WAYNE, Pa. - Avalo Therapeutics, Inc. (NASDAQ:AVTX), a clinical stage biotechnology company with a market capitalization of $48.4 million, has appointed Rita Jain, M.D. to its Board of Directors, the company announced Wednesday. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt and a strong current ratio of 22.6x.

Dr. Jain, a rheumatologist with over two decades of leadership experience in biopharmaceutical development, most recently served as Executive Vice President and Chief Medical Officer at ChemoCentryx, where she supported the development and commercialization of Tavneos, a treatment for ANCA-associated vasculitis. Her appointment comes at a crucial time for Avalo, which has seen its stock price decline by over 50% in the past six months, though InvestingPro analysis suggests the stock is currently undervalued.

"I am excited to join Avalo’s Board at this pivotal stage in the company’s growth, with the progressing Phase 2 LOTUS trial in HS expected to readout in the middle of next year," Dr. Jain said in the press release.

Avalo is currently advancing AVTX-009, an anti-IL-1β monoclonal antibody, through a Phase 2 clinical trial for hidradenitis suppurativa (HS), with results anticipated in mid-2026.

Prior to ChemoCentryx, Dr. Jain held the position of Senior Vice President and Chief Medical Officer at Akebia Therapeutics and has worked in leadership roles at AbbVie, Pfizer, and Immunovant. She currently serves on the boards of Celldex Therapeutics and AnaptysBio.

Dr. Jain received her M.D. from the State University of New York at Stony Brook School of Medicine and completed specialized training in rheumatology.

Avalo Therapeutics focuses on developing treatments for immune dysregulation, with AVTX-009 as its lead asset targeting inflammatory diseases. While the company faces challenges with weak gross profit margins, InvestingPro reports a solid Altman Z-Score of 5.16, indicating financial stability. Discover 9 additional exclusive ProTips and comprehensive financial analysis by subscribing to InvestingPro.

In other recent news, Avalo Therapeutics has been the focus of multiple analyst firms and corporate developments. The company reported a significant increase in its net cash position by approximately $68 million, stemming from warrant exercises, which bolsters its financial stability. Avalo’s lead asset, AVTX-009, is advancing through a Phase 2 clinical trial for the treatment of hidradenitis suppurativa (HS), with topline data expected in 2026. Analysts from H.C. Wainwright upgraded Avalo to a Buy rating, while Jefferies initiated coverage with a Buy rating and set a price target of $23.00, citing the potential of AVTX-009. Stifel also began coverage with a Buy rating and a $36.00 price target, emphasizing the promising data surrounding AVTX-009.

Additionally, Oppenheimer maintained its Outperform rating with a $35.00 price target, highlighting the potential of AVTX-009 as a leading treatment in its class. Avalo announced the appointment of Michael Heffernan as the new Chairman of its Board of Directors, succeeding Dr. Garry Neil, who remains as a Board member and CEO. The company anticipates announcing a second indication for its development pipeline within the current year, further expanding its therapeutic scope. Avalo’s financial position is strong, with cash reserves expected to fund operations into 2027, providing a solid foundation for its ongoing clinical trials and strategic initiatives.

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