Avalyn has raised $300 million in an initial public offering, the company announced Tuesday. The proceeds will fund development of inhaled formulations of drugs already approved for pulmonary fibrosis, including treatments that compete with Esbriet and Ofev.
The biotech is targeting both idiopathic pulmonary fibrosis (IPF) and progressive pulmonary fibrosis (PPF), two debilitating lung conditions. By delivering therapies directly to the lungs via inhalation, Avalyn aims to improve efficacy and reduce systemic side effects compared to oral versions.
Avalyn has not yet disclosed specific clinical data from its pipeline. The company’s lead candidate is an inhaled version of a drug that inhibits the same pathway as Ofev, though it has not released trial results publicly. The inhaled approach could offer a novel delivery method in a market dominated by oral medications.
With the IPO proceeds, Avalyn plans to advance its programs into mid-stage trials. Investors responded favorably to the offering, which was priced at the midpoint of the expected range, signaling confidence in the platform despite early-stage risk.
The pulmonary fibrosis market is estimated to exceed $5 billion annually, driven by aging populations and limited treatment options. However, developing inhaled biologics presents manufacturing and formulation challenges that have tripped up prior attempts, a caution for Avalyn’s ambitious roadmap.