Avalo Therapeutics entered into an agreement to license to Apollo Therapeutics Group exclusive, worldwide rights to its anti-IL18 monoclonal antibody product AVTX-007, which it originally licensed from MedImmune, for $15 million and potential milestones of up to $73.8 million.
The cash will be welcome as the company was among a growing list of biotech companies that had pared its pipeline, cut staff, and took steps to reduce its cash burn. In May, it laid off one-third of its employees.
Avalo was pursuing AVTX-007 as a treatment for the rare inflammatory condition Still’s disease. The company originally acquired rights to AVTX-007 from MedImmune when it completed its merger with Aevi Genomic Medicine in February 2020.
The $15 million payment includes a $5 million upfront payment and an additional $10 million as partial consideration for transition, consulting, and transfer activities. In addition, Apollo will pay Avalo a royalty payment of a low single digit percentage of annual net sales, which percentage increases to another low single digit percentage if annual net sales exceed a specified amount.
Pursuant to the terms of the license agreement, Apollo will take responsibility for conducting the currently ongoing study for AVTX-007 for the treatment of adult-onset Still’s disease, while Avalo will continue the study at Apollo’s expense until the transition is made.
Author: Rare Daily Staff
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