Avalo Therapeutics completes divestiture of AVTX-800 series

Avalo Therapeutics announced it has completed the divestiture of its rights, title and interest in, assets relating to AVTX-801, AVTX-802 and AVTX-803 to AUG Therapeutics. The Company previously announced it entered into a purchase agreement with AUG to divest the 800 Series on September 12, 2023. AUG paid an upfront payment of $150,000, as well as, for each compound, is obligated to make a contingent milestone payment of $15,000,000 if the first Food and Drug Administration approval is for an indication other than a Rare Pediatric Disease, or up to 20% of certain payments, if any, granted to AUG upon any sale of any priority review voucher granted to AUG by the FDA, net of any selling costs. Additionally, AUG assumed $150,000 of certain liabilities incurred prior to the date of the Purchase Agreement and assumed all costs relating to the 800 Series from the date of the Purchase Agreement. “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. In AUG’s hands, these programs could advance to provide reliable treatments for patients in need,” stated Dr. Garry Neil, MD, Chief Executive Officer, and Chairman of the Board at Avalo Therapeutics. “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.”