SCHEDULE 13G/A: RA Capital Maintains Significant Stake in Avalo Therapeutics

RA Capital Management and its affiliates report a 9.9% beneficial ownership stake in Avalo Therapeutics, Inc. as of September 30, 2025.

Summary

• RA Capital Management, L.P., Peter Kolchinsky, Rajeev Shah, and RA Capital Healthcare Fund, L.P. (collectively, the "Reporting Persons") beneficially own 1,386,167 shares of Avalo Therapeutics, Inc. common stock.
• This represents 9.9% of the class, rounded down from 9.99% due to EDGAR system limitations.
• The ownership includes 662,968 directly held common shares and Series C preferred stock convertible into up to 2,483,099 common shares.
• A "Beneficial Ownership Blocker" provision precludes conversion of the preferred stock to the extent that, following conversion, the Fund, together with its affiliates, would own more than 9.99% of the common stock outstanding.
• The calculation of the percentage is based on 13,152,356 common shares outstanding as of August 6, 2025, plus 723,199 shares issuable from preferred stock conversion.
• The Reporting Persons expressly disclaim status as a "group" for purposes of this Schedule 13G.

Sentiment

Score: 6

Explanation: The filing indicates continued significant institutional investment by RA Capital, a positive signal of confidence. However, it is a routine disclosure and does not provide new operational insights or a change in investment strategy beyond maintaining the existing stake within regulatory limits.

Positives

• RA Capital Management, a prominent healthcare investor, maintains a significant 9.9% beneficial ownership stake in Avalo Therapeutics, indicating continued investment interest.
• The investment includes both common stock and convertible preferred stock, suggesting a flexible investment structure.

Negatives

• The "Beneficial Ownership Blocker" limits the immediate conversion of preferred stock, capping the reported beneficial ownership at 9.99%.

Future Outlook

NA

Industry Context

This filing indicates continued institutional investor interest from RA Capital Management, a specialized healthcare investor, in Avalo Therapeutics. Such significant passive stakes are common in the biotechnology sector, where long-term investment in promising therapies is typical, often with provisions like beneficial ownership blockers to manage regulatory thresholds.

Stakeholder Impact

• Shareholders: Provides transparency regarding a significant institutional investor's stake, potentially offering a signal of confidence in the company.
• Company Management: Awareness of a large, passive institutional holder, which may influence strategic decisions or communication.

Key Dates

Keywords

Avalo Therapeutics, RA Capital Management, Schedule 13G, Beneficial Ownership, Common Stock, Preferred Stock, Institutional Investor, Biotechnology Investment