Avalo Therapeutics Purchases Optional Milestone Buyout

WAYNE, Pa., April 28, 2026 (GLOBE NEWSWIRE) -- Avalo Therapeutics, Inc. (Nasdaq: AVTX) (“Avalo”), a clinical-stage biotechnology company fully dedicated to developing IL-1β based treatments for immune-mediated inflammatory diseases, today announced that it has entered into a Milestone Buyout Option and Amendment Agreement (the “Buyout Agreement”) related to the company's prior acquisition of AlmataBio, Inc. in March of 2024. Pursuant to the Buyout Agreement, Avalo has agreed to pay $2.25 million to the former AlmataBio securityholders for an option, exercisable within 90 days of the effective date, to pay an additional $5.125 million in cash or shares of Avalo common stock, or a combination thereof in lieu of a previously disclosed $15 million contingent milestone payment due upon the first patient being dosed in a Phase 3 trial.