Avalyn Pharma, a biotechnology company specializing in lung fibrosis, plans to price its IPO at $16 to $18 per share, with an aim to raise $201 million.

Avalyn Pharma (AVLN.US) is a biotechnology company focused on developing inhaled drugs for the treatment of rare respiratory diseases. The company, based in Boston, Massachusetts, announced the terms of its initial public offering (IPO) on Thursday. It plans to raise $201 million by issuing 11.8 million shares of stock at a price range of $16 to $18 per share. As a clinical-stage biotechnology company, Avalyn Pharma is dedicated to developing inhaled anti-fibrotic therapies for rare respiratory diseases, particularly pulmonary fibrosis. Their lead candidates, AP01 and AP02, are inhalation formulations of pirfenidone and nintedanib, respectively, aimed at delivering approved anti-fibrotic drugs directly to the lungs to increase local drug exposure and reduce systemic side effects. AP01 targets idiopathic pulmonary fibrosis (IPF) and progressive pulmonary fibrosis (PPF) and has completed phase 1b clinical trials in the ATLAS study. Patients from the trial will transition to an ongoing open-label extension study, which includes other IPF and PPF patient populations. AP02, an inhaled formulation of nintedanib for the treatment of pulmonary fibrosis, is in development, expanding the company's product line in the two most commonly used anti-fibrotic mechanisms. Despite the company not yet being profitable and projecting a net loss of $85.2 million by 2025 due to increased clinical research and development expenses, its strong funding background provides robust support for future research. Novo Holdings, a well-known healthcare investment fund and the major institutional shareholder, holds approximately 13% of the company. Since its establishment in 2011, Avalyn has raised over $380 million in private equity investments. Founded in 2011, Avalyn Pharma plans to go public on Nasdaq with the stock symbol AVLN. Morgan Stanley, Jefferies Financial Group Inc., Evercore ISI, and Guggenheim Securities are the joint underwriters for this transaction. The pricing is expected to take place during the week of April 27, 2026.