Oppenheimer more bullish on Avalo Therapeutics, upgrades to Outperform

As previously reported, Oppenheimer upgraded Avalo Therapeutics (AVTX) to Outperform from Perform with a $35 price target on the firm’s optimism that AVTX-009 offers a best-in-class profile in the competitive hidradenitis suppurativa space. In late March, Avalo announced a deal to acquire privately held AlmataBio and a concomitant private placement financing of up to $185M. The anti-IL-1beta antibody, now called AVTX-009, to be gained in the combination was originally developed by Eli Lilly (LLY), Oppenheimer notes. As the company readies ‘009 for Phase 2 development in hidradenitis suppurativa, the firm is constructive on this new asset and its potential. Although topline data are not expected until 2026, advancement of ‘009 into evaluation for another inflammatory indication, potentially ulcerative colitis, is on the table and could provide interim news flow, the firm adds.