Avalyn Pharma is hoping to rake in around $182 million from an IPO, which the biotech will use to take its inhaled versions of approved drugs for respiratory conditions into late-stage studies.
The Boston-based biotech is planning to offer around 11.8 million shares priced between $16 and $18, according to an April 23 Securities and Exchange Commission filing. Assuming the final share price falls in the middle of this range, Avalyn expects the IPO to bring in net proceeds of $181.8 million.
This figure could rise to $209.7 million if underwriters fully take up their option to buy an additional 1.7 million shares at the same price, according to the filing.
Avalyn managed to secure an $100 million series D round in July 2025 that was backed by the likes of Novo Holdings. That raise followed a $175 million series C in 2023 and a $35.5 million series B back in 2020.
The biotech still had $138.5 million at the start of the year, according to Thursday’s filing. Combined with the IPO proceeds, Avalyn has earmarked $150 million to take its lead drug AP01 through phase 2b topline data and into phase 3 development. AP01 is an inhaled formulation of pirfenidone, which is sold under many names as a pill for idiopathic pulmonary fibrosis (IPF), such as Esbriet.
The company also expects $90 million will be needed to take another asset, AP02, through an ongoing phase 2 trial and into phase 3. AP02 is an inhaled version of the IPF drug nintedanib, which is marketed as Ofev and Vargatef in its oral form.
Another $10 million is needed to take a third med—an inhaled combination of pirfenidone and nintedanib called AP03—into the clinic, according to the filing. To date, pairing the oral therapies hasn’t been possible because of the additive side effects, but Avalyn is currently running preclinical studies for the asset.
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The biotech currently employs 51 full-time employees, of which 32 work in R&D, according to yesterday’s filing. The company is headed up by CEO Lyn Baranowski, whose previous roles included developing respiratory medicines at Pearl Therapeutics, which were later acquired by AstraZeneca and marketed as Breztri and Bevespi.
Biotech IPO levels have fluctuated in the early months of 2026. The initial crop of offerings this year included other companies working on new formulations of approved drugs.
SpyGlass Pharma, which secured a $150 million IPO in February, is developing long-acting versions of approved medicines for chronic eye conditions. Meanwhile, Veradermics, which made a splash with a $256.3 million debut on the New York Stock Exchange, is working on an oral version of the molecule behind hair loss treatment Rogaine.
