Risk Factors Update Summary

• Expect to require additional capital in the future to continue operations and advance product candidates. Raised $185 million in private placement financing.
• Legislation passed allowing CMS to negotiate prices for certain drugs, starting in 2026, impacting revenue.
• Closed private placement financing for $185 million, providing upfront net proceeds of approximately $105 million.
• Inflation Reduction Act of 2022 imposes penalties for non-compliance with pricing regulations.
• Acquired AVTX-009 through AlmataBio, focusing resources on its development, potentially impacting other product candidates.
• Uncertainty regarding coverage and reimbursement status of FDA-approved products, affecting sales strategies.
• Increased focus on AVTX-009 may challenge employee retention and attraction, impacting operations.
• Acquisition of AVTX-009 necessitates increased research and development infrastructure, affecting costs.
• Potential dilution of common stock due to conversion of preferred stock and exercise of warrants.
• Non-compliance with Nasdaq listing requirements could lead to delisting, impacting stock price.