Avalo Therapeutics (NASDAQ:AVTX) stock is taking off on Wednesday after the biotechnology company announced an asset sale.
Avalo Therapeutics is selling its rights, title and interest in assets that are part of the 800 Series to AUG Therapeutics. That includes AVTX-801, AVTX-802 and AVTX-803. The deal is set to close in the fourth quarter of 2023.
As for payment, AUG Therapeutics is contributing an upfront amount of $150,000 to the purchase. It will also make milestone payments of up to $15 million for each compound. That means the total milestone payments could reach $45 million. AUG has also taken on $150,000 in liabilities connected to the 800 Series.
Dr. Garry Neil, MD, Chairman and CEO of Avalo Therapeutics, said this about the deal:
“We are excited to announce the transfer of our 800 series programs for the treatment of congenital disorders of glycosylation (CDGs) to AUG. In AUG’s hands, these programs could advance to provide reliable treatments for patients in need. This divestiture also reaffirms Avalo’s unwavering commitment to executing our strategic focus on our immunology assets, which we believe hold the greatest value and potential for our shareholders.”
AVTX Stock Movement Today
Investors are celebrating the asset sale agreement with heavy trading of AVTX stock. As of this writing, more than 62 million shares have changed hands. That’s already well above its daily average trading volume of about 10.9 million shares.
AVTX stock is up 69.4% as of Wednesday morning.
Investors looking for more of the latest stock market news for today are in luck!
We’ve got all of the most recent stock market news worth reading about on Wednesday! Among that is what has shares of Novo Nordisk (NYSE:NVO) stock moving today, the biggest pre-market stock movers this morning and more. All of this news is ready to go at the links below!
More Stock Market News For Wednesday
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
