Why Are Avalo Therapeutics Shares Plummeting On Monday

Avalo Therapeutics Inc AVTX shares lost around 80% of their value in premarket trading on Monday after the company released topline results from the Phase 2 PEAK trial evaluating AVTX-002 (anti-LIGHT mAb) in patients with poorly controlled non-eosinophilic asthma (NEA). 

The trial did not meet its primary endpoint, measured by the reduction in asthma-related events. 

AVTX-002 demonstrated a favorable safety and tolerability profile. AVTX-002 significantly reduced LIGHT levels for the study duration, indicating target engagement. 

Additionally, an exploratory analysis revealed a positive trend in the reduction of asthma-related events in patients treated with AVTX-002 compared to placebo within a substantial sub-population of patients with elevated baseline LIGHT levels.

Dr. Michael Wechsler, the PEAK Trial's Principal Investigator, said: "Although this study did not reach its primary endpoint in this patient population, we have identified a positive trend in a subpopulation of patients with high baseline LIGHT levels. This is exciting because it gives us a potential novel biomarker for treatment in patients with severe non-eosinophilic asthma."

"While the trial did not meet its primary endpoint, we are intrigued and encouraged by the finding that there was a trend toward fewer asthma-related events in patients treated with AVTX-002 that had high serum baseline LIGHT levels," said Dr. Garry Neil, Chief Executive Officer and Chairman of the Board. 

Price Action: AVTX shares are down 81% at $0.84 during the premarket session on the last check Monday.