
Core Insights - Avalo Therapeutics, Inc. is focused on developing IL-1β-based treatments for immune-mediated inflammatory diseases, with significant progress in the Phase 2 LOTUS trial for hidradenitis suppurativa (HS) [1][10] Recent Corporate Highlights and Upcoming Anticipated Milestones - The Phase 2 LOTUS trial has enrolled over 75% of the planned patients, with completion expected by year-end and top-line results anticipated in mid-2026 [2] - Rita Jain, M.D. has been appointed to the Board of Directors, bringing extensive experience in clinical development and regulatory strategy [5][6] Second Quarter 2025 Financial Update - As of June 30, 2025, the company reported cash and short-term investments of approximately $113 million, expected to fund operations into 2028 [5][6] - Research and development expenses for Q2 2025 were $14.1 million, an increase of $9.5 million from Q2 2024, primarily due to costs associated with the LOTUS trial [6][8] - General and administrative expenses were $5.2 million for Q2 2025, up $0.7 million from the same period in 2024 [6][8] - The net loss for Q2 2025 was $20.8 million, compared to a net income of $98.5 million in Q2 2024, largely due to a $109.5 million change in other expenses related to warrants from a prior private placement [6][9] Consolidated Balance Sheets - Total current assets as of June 30, 2025, were $115.2 million, down from $138.9 million as of December 31, 2024 [4][7] - Total assets decreased to $126.6 million from $150.7 million at the end of 2024 [7] Consolidated Statements of Operations - Total operating expenses for Q2 2025 were $19.3 million, compared to $9.6 million in Q2 2024 [8][9] - The loss from operations for Q2 2025 was $19.3 million, compared to a profit of $9.6 million in Q2 2024 [9]