Phase 2 HS win and $472M war chest position abdakibart for Phase 3, contingent on replicating that signal at registrational scale

Avalo Therapeutics is a clinical-stage company developing a treatment for hidradenitis suppurativa, a painful chronic skin disease, which is not yet approved.

Abdakibart, an anti-IL-1 antibody for hidradenitis suppurativa, a painful chronic skin disease with limited treatment options, met its primary endpoint in Phase 2 LOTUS at both doses with responses the company claims are the highest absolute improvement in trials of comparable size or larger. The thesis resolves on whether Phase 3 replicates those results, as Phase 2 data alone cannot support approval. Monthly dosing convenience is a differentiating feature, but a crowded HS pipeline including sonelokimab means a clean Phase 3 is necessary but not sufficient for commercial success.