Avalo Therapeutics is continuing to hit bumps in its journey as it is executing a workforce reduction to focus more on its pipeline.
The Rockville, MD-based biotech announced that it would be committing to a staff reduction in March. According to the company, it will be reducing its headcount by a third to tighten its financial belt. The company also stated that this move would help it successfully achieve its objectives for the rest of the year. According to a Form 10-K filing, the company had 44 employees at the end of 2021.
With the staff reduction, the company is looking to focus on its development pipeline. Most notably, the company is headed toward the data readout for its Phase II trial of AVTX-002, a monoclonal antibody for immune-inflammatory diseases.
The company is also looking to advance R&D for AVTX-803, an oral therapeutic intended to treat leukocyte adhesion deficiency type II (LadII). Data from this trial are expected in the fourth quarter of this year.
The company has been stumbling in the first quarter, as CEO Mike Cola and CFO Schond Greenway stepped down in February to “pursue other interests,” according to a press release. They were replaced by Garry Neil, the CSO at the time and a J&J veteran, and Chris Sullivan, the chief accounting officer.
The past year has not been kind to Avalo, as it recently dropped to penny stock status. The company’s share price $AVTX has recorded an 85% drop since last year. Since Thursday’s opening bell, its share price has been trending downwards, dropping by 10%.
The current bear market continues to pummel the biotech sector, as small companies are continually feeling the weight of the market, leading to layoffs and facility closures across the board. Though some public companies have managed to raise new funds off positive data releases, they have been few and far between.