Avalo Therapeutics delivered positive Phase 2 LOTUS topline data for abdakibart in hidradenitis suppurativa in May, hit HiSCR75 of 42.5% (combined) versus 25.6% on placebo (p=0.004) at Week 16 across 253 patients, and followed it two trading days later with a $431.3M gross / $404.9M net underwritten offering that closed May 7. The combination reset the company from "will it make it to Phase 3" to "when does the registrational program start," with management guiding Phase 3 initiation in the first half of 2027 and an IND for the next-generation AVTX-010 in the same window. Cash, cash equivalents and investments closed the quarter at $472.2M (June 30, 2026), up from $98.3M at year-end 2025, extending the runway commentary from "into 2028" to "into 2029." The cost was dilution: common shares outstanding nearly tripled from 18.5M to 52.9M in the half, the weighted-average share count quadrupled year over year in Q2, and the GAAP net loss widened to $36.4M from $20.8M as $9.3M of incremental R&D flowed through. The open question the next six months will answer is whether the market is willing to underwrite abdakibart on Phase 2 data alone, or whether it discounts the readout until registrational catalysts de-risk the asset.