Avalo Therapeutics price target lowered to $34 from $40 at Wedbush

Wedbush lowered the firm’s price target on Avalo Therapeutics (AVTX) to $34 from $40 and keeps an Outperform rating on the shares. The firm notes the company reported first quarter financials and provided corporate updates following recent positive topline data from the Phase 2 LOTUS study. As a reminder, the trial evaluated two doses of abdakibart versus placebo in 253 patients randomized across arms. Overall, HiSCR75 at week 16 was similar across the 150 mg and 300 mg doses, with impressive responses in 42.2% and 42.9%, respectively. Wedbush views the data as highly competitive in the hidradenitis suppurativa landscape, and believes the data significantly de-risks abdakibart in this indication. Noting challenges in historically translating data between Phase 2 and 3 in HS, the firm points to the consistent benefit observed across dosing cohorts and robust study size.