Guggenheim starts Avalo at Buy on hidradenitis suppurativa potential

As previously reported, Guggenheim initiated coverage of Avalo Therapeutics (AVTX) with a Buy rating and $50 price target, citing a positive view of IL-1beta blockade as a novel therapeutic approach for treatment of hidradenitis suppurativa. AVTX-009 is positioned to bridge the gap seen with AbbVie’s (ABBV) Lutikizumab by offering a high-affinity, IL-1beta-specific targeting that optimizes the risk-benefit profile and leverages a superior pharmacokinetic foundation for less frequent dosing, the analyst tells investors. If approved, the firm models about $2.1B in peak global sales for AVTX-009, the analyst added.