05:26 PM EDT, 03/27/2024 (MT Newswires) -- Avalo Therapeutics ( AVTX ) shares more than tripled in after-hours trading Wednesday after the company said it acquired closely held AlmataBio and the phase 2-ready anti-IL-1beta mAb, or AVTX-009, to treat hidradenitis suppurativa, a severe autoimmune disease.

Concurrently, the company said late Wednesday it entered into a definitive agreement to offer preferred stock and warrants in a private placement for gross proceeds of up to $185 million. The proceeds include an initial gross upfront investment of $115.6 million.

The private placement will likely close on March 28.

The company said topline results from its planned phase 2 trial in hidradenitis suppurativa are likely in 2026, and the upfront funding will probably fund operations through this data readout and into 2027.

In addition to hidradenitis suppurativa, Avalo intends to develop AVTX-009 in at least one other chronic inflammatory indication.

Avalo said no person affiliated with AlmataBio will become its employee.

Price: 16.29, Change: +11.54, Percent Change: +242.95