Avalo Therapeutics Abdakibart Potential Intact After AbbVie Data, Wedbush Says

12:45 PM EDT, 10/22/2026 (MT Newswires) -- Avalo Therapeutics' (AVTX) abdakibart remains promising for hidradenitis suppurativa, with phase 2 results comparing favorably with AbbVie's (ABBV) phase 3 lutikizumab data, which Wedbush Securities said supports abdakibart's potential in a Thursday note. The analysts said AbbVie's phase 3 study met its primary endpoint at week 16, as well as several secondary endpoints. However, the absolute response rate was modest compared with the broader competitive landscape and Avalo Therapeutics' phase 2 data. The analysts said they also believe abdakibart has commercial advantages, including less frequent maintenance dosing every four weeks and consistent activity in both biologic-naive and biologic-experienced patients across both dose groups. The company expects to begin phase 3 trials in the first half of 2027, pending the US Food and Drug Administration feedback on study design, the analysts added. Wedbush cut its price target on Avalo to $22 from $34 and reiterated its outperform rating, saying abdakibart's profile remains "highly competitive." The company's shares fell nearly 37% in Thursday afternoon trading. Price: 7.76, Change: -4.50, Percent Change: -36.70