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Avalo Therapeutics (NASDAQ:AVTX) traded higher in the premarket on Friday after Cantor Fitzgerald initiated its coverage with an Overweight recommendation in a thesis centered on the Maryland-based biotech’s lead asset, AVTX-009.
Analyst Prakhar Agrawal’s bullish view comes as Avalo (NASDAQ:AVTX) targets a mid-2026 data release from its Phase 2 LOTUS trial for the interleukin-1β antibody in hidradenitis suppurativa, an inflammatory skin condition.
Citing a “strong validation” from AbbVie’s (ABBV) competitive candidate lutikizumab, designed to target IL-1α and IL-1β, Agrawal says he is positive on the prospects for AVTX-009, which, according to him, has approximately $1B in adjusted peak sales potential.
The analyst noted “a very attractive risk/reward for AVTX into the Ph2 HS readout based on the implied probability of success (15-20% by our estimate) in the stock for HS, which seems very low to us based on the validation from lutikizumab.”