Why Microcap Biotech Firm Avalo Therapeutics Stock Is Trading Higher Today?
Portfolio Pulse from Vandana Singh
Avalo Therapeutics Inc (AVTX) has agreed to sell its rights, title, and interest in assets relating to AVTX-801, AVTX-802, and AVTX-803 to AUG Therapeutics. AUG will pay an upfront payment of $150,000 and make a contingent milestone payment of up to $45 million. The transaction is expected to close in Q4 of 2023. The deal will have an immediate positive impact on Avalo's cash flow and reduce the utilization of internal resources for non-core assets.
September 12, 2023 | 2:44 pm
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POSITIVE IMPACT
Avalo Therapeutics' asset sale to AUG Therapeutics is expected to positively impact its cash flow and reduce resource utilization for non-core assets. The deal is expected to close in Q4 2023.
The sale of assets by Avalo Therapeutics to AUG Therapeutics is a significant event for the company. The upfront payment and potential milestone payments will provide a cash influx, which can be used for other strategic initiatives. This could potentially boost the company's financial performance and hence its stock price. The reduction in resource utilization for non-core assets also indicates a strategic focus, which can be viewed positively by investors.
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