Avalo Therapeutics buys option to reduce AlmataBio milestone from $15M to $7.375M

Avalo Therapeutics, Inc.

Pays $2.25M upfront for 90-day option to pay $5.125M (cash/stock) in lieu of $15M Phase 3 dosing milestone.
If option not exercised, $12.75M milestone remains due upon first patient in Phase 3 trial.
Agreement amends March 2024 Merger Agreement for AlmataBio acquisition.
Effective April 26, 2026; option decision due within 90 days.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Avalo Therapeutics, Inc. amended Milestone Buyout Option Agreement and Amendment to Agreement and Plan of Merger and Reorganization with AlmataBio, Inc. and Patrick J. Crutcher, solely as representative agent and attorney-in-fact of the former holders of securities in AlmataBio valued at $2.25 million (effective 2026-04-26).

Action: amendment
Agreement: merger
Counterparty: AlmataBio, Inc. and Patrick J. Crutcher, solely as representative agent and attorney-in-fact of the former holders of securities in AlmataBio
Value: $2.25 million
Effective: 2026-04-26

Exact text from the filing

On April 26, 2026 (the “ Effective Date ”), Avalo Therapeutics, Inc. (the “ Company ”) entered into a Milestone Buyout Option Agreement and Amendment to Agreement and Plan of Merger and Reorganization (the “ Milestone Buyout and Amendment Agreement ”).

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Avalo Therapeutics, Inc. filing history →

Source: SEC EDGAR

accession 0001534120-26-000026

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