预约演示

Avalo drops three rare disease assets amid ongoing challenges

2023-09-13

交易

临床2期引进/卖出

Adam Zamecnik

@a_zamecnik

Avalo drops three rare disease assets amid ongoing challenges. Credit: Shutterstock / Party people studio.

Avalo Therapeutics will divest three compounds in its rare disease AVTX-800 series to AUG Therapeutics, marking a further development in the company’s tumultuous past months that included a negative trial readout and a default.

Avaloivestment is expected to be completed in Q4 2023, according to a 12 September press release.

Avalo TherapeuticssAUG Therapeutics

ReportsChronic Heart Failure Drugs in Development by Stages, Target, MoA, RoA, Molecule Type and Key Pla... GlobalData

ReportsAcute Heart Failure Drugs in Development by Stages, Target, MoA, RoA, Molecule Type and Key Players GlobalData

View allCompanies IntelligenceAvalo Therapeutics IncAvalo, Inc.AUG Therapeutics LLCView all

AUG wilChronic Heart Failurement of $150,000 for each of the three compounds bought from Avalo. This includes AVTX-801 (D-galactose), AVTX-802 (D-mannose) and AVTX-803 (L-fucose).

In addition to the upfront payment, AUG will make a contingent payment of $15m if the first US Food and Drug Administration (FDA) approval is for an indication that is not a rare paediatric disease. AUG will also assume up to $150,000 of certain liabilities incurred before the agreement, based on the 12 September press release.

Avalo’sAcute Heart Failureapeutic dose of D-galactose that was developed for the treatment of the rare inherited disease phosphoglucomutase 1 (PGM1) deficiency. AVTX-803 is a therapeutic dose of L-fucose for use in leukocyte adhesion deficiency type II (LAD II), which is a different type of carbohydrate-deficient glycoprotein syndrome, based on the company’s website.

Avalo first shared its plans for a potential divestment in its AUG Therapeutics LLCViewate, shared last month. The US-based company stated that it was considering out-licensing or selling its non-core and even possibly core assets to reduce future expenses. The company already entered a non-binding letter of intent for the sale of the AVTX-800 series in July 2023.

AUGthe same month, Avalo entered a forbearance agreement with its debt lenders that folloAvalo default. The deAVTX-801ppD-galactose a AVTX-802 aD-mannoseange iAVTX-803mpL-fucosesiness, per the 3 August company update.

In June, Avalo announced that the PhAUG II PEAK study (NCT05288504) of its compound AVTX-002US Food and Drug Administration (FDA)sthma patients missed its primary endpoint. While the trial did not meAUGthe primary endpoint threshold for a reduction in asthma-related events, positive trends were observed in a patient sub-population with heightened baseline serum LIGHT levels, per a 26 June announcement. The company announced plans to evaluate these results to shape the asset’s further development, based on the 3 August update.