AVTX - 1Q26; We Continue To Like Abdakibart's De-Risked Biology in HS; Registrational Phase III HS Study Underway; Next Potential Catalyst Is Luti's Phase III Readout in 2H26

Research evidence excerpt

AVTX - 1Q26; We Continue To Like Abdakibart's De-Risked Biology in HS; Registrational Phase III HS Study Underway; Next Potential Catalyst Is Luti's Phase III Readout in 2H26

May 13, 2026

Yatin Suneja yatin.suneja@guggenheimpartners.com AVTX - 1Q26; We Continue To Like Abdakibart's De-

212 518 9565 Risked Biology in HS; Registrational Phase III HS

Min Lee, Ph.D.

min.lee@guggenheimpartners.com Study Underway; Next Potential Catalyst Is Luti's

212 823 6744 Phase III Readout in 2H26 Iris Gao, Ph.D.

iris.gao@guggenheimpartners.com

212 518 9013 Key Message: This morning, AVTX announced 1Q26 earnings and ended the quarter

Eddie Hickman, Ph.D. with pro forma cash & cash equivalents of ~$487MM after net proceeds from a recent

eddie.hickman@guggenheimpartners.com capital raise, which is expected to fund operations through 2029, per the company.

212 518 9904 Recall that AVTX recently disclosed a positive topline readout (see note HERE) for the

Phase II LOTUS study (n=250) in evaluating abdakibart (anti-IL-1β mAb) for treatment of Delma Caiati, M.D., Ph.D.

delma.caiati@guggenheimpartners.com hidradenitis supprativa (HS). Per our conversation with mgmt, while they acknowledge

617 859 4606 that abdakibart didn't achieve the pbo-adj. ~Δ20% in HiSCR-75 that the Street was

looking for, we are beginning to acquiesce to the fact that HS is a challenging indication

from an endpoint perspective. Despite high pbo response, abdakibart met stat-sig

and achieved one of the highest reported HiSCR75 to-date at the absolute level

AVTX BUY (42.5%-45.2%reported outcomesacrossand bothother doses).pain-relatedOtherscoressecondaryare underway,endpointsandrelatedAVTX toexpectspatient-to

Avalo Therapeutics, Inc. disclose full dataset in a future medical conference. The company will be discussing