Avalyn Pharma has overshot its expectations with a $300 million IPO that the biotech will use to fund late-stage studies of its inhaled versions of approved respiratory drugs.
The company is offering 16.6 million shares, according to an April 29 release, significantly above the 11.8 million shares the biotech had expected as recently as last week.
With the share price now fixed at $18—the top end of the $16-$18 range set out last week—Avalyn is set to bring in gross proceeds of $300 million from this morning’s IPO, instead of the $180 million net proceeds it had previously been expecting.
Those proceeds could rise by an additional $45 million if underwriters fully take up their option to buy an additional 2.5 million shares at the same price.
Avalyn’s stock is due to begin trading on the Nasdaq April 30 under the ticker “AVLN.”
Combined with the $138.4 million that Avalyn entered the year with, the extra IPO cash should make it easier for the company to fund its various pipeline plans. The company has already earmarked $150 million to advance 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 oral therapies hasn’t been possible due to 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 last week’s Securities and Exchange Commission 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.
