Avalyn Pharma is preparing for an initial public offering (IPO) as it seeks additional capital to advance its pipeline of inhaled therapies for lung diseases into late-stage clinical development. The Boston-based biotechnology company disclosed its plans in an April 8 filing with the U.S. Securities and Exchange Commission, though it has not specified the number of shares to be offered or the expected pricing.
According to the filing, a primary use of the IPO proceeds would be to support the continued development of its lead candidate, AP01. This drug is currently being evaluated in a phase 2b clinical study for progressive pulmonary fibrosis, with the company aiming to progress the therapy into phase 3 trials. AP01 is an inhaled formulation of pirfenidone, a drug already approved in oral form for idiopathic pulmonary fibrosis (IPF) and marketed under various brand names, including Pirespa.
Avalyn is also allocating resources toward AP02, another inhaled therapy currently in a phase 2 study. This candidate is based on nintedanib, a drug used in oral form for IPF and sold under the brand names Ofev and Vargatef. Similar to AP01, the company intends to move AP02 into phase 3 testing.
The third program in Avalyn’s portfolio is AP03, which combines pirfenidone and nintedanib into a single inhaled therapy. While combining these drugs in oral form has not been feasible due to cumulative side effects, Avalyn is exploring this approach through inhalation. The candidate is still in preclinical development, with ongoing studies assessing its potential before entering human trials.
Avalyn has previously secured significant private funding to support its research activities. In July 2025, the company raised $100 million in a series D financing round backed by investors including Novo Holdings. This followed earlier funding rounds of $175 million in 2023 and $35.5 million in 2020. As of the start of 2026, Avalyn reported having $138 million in cash reserves.
The company employs 51 full-time staff, with 32 working in research and development roles. Avalyn is led by Chief Executive Officer Lyn Baranowski, who has prior experience in respiratory drug development. Her previous work included contributions to therapies developed at Pearl Therapeutics that were later acquired by AstraZeneca and marketed as Breztri and Bevespi.
The IPO comes amid a shifting landscape for biotechnology listings. Activity in early 2026 showed signs of recovery, with several companies entering public markets after a slower period in the previous year. However, momentum appeared to slow again in March. Among recent IPOs are companies focused on reformulating existing drugs, such as SpyGlass Pharma and Veradermics.
Market participants have indicated a more selective environment for new listings. “We are likely in/entering a more discerning IPO marketplace where drug innovators with proven, later-stage assets/programs will have the necessary support to go public,” said Michael Rachlin, senior managing director at FTI Consulting’s Corporate Finance & Restructuring unit.
Despite this caution, IPOs are still viewed as a key funding mechanism for biotechnology firms. Rachlin also indicated that public offerings remain important for enabling companies to finance development and commercialization efforts. In 2025, only eight biotech companies completed IPOs, marking the lowest total in the post-pandemic period.
Avalyn’s planned IPO reflects its effort to secure funding for advancing its inhaled therapies through late-stage trials as it continues development across its pipeline.
Avalyn’s Strategic IPO Move
Avalyn is entering the public markets to raise capital that will directly support its clinical programs. With Avalyn focusing on inhaled treatments, the IPO is expected to accelerate the development of therapies designed for diseases such as pulmonary fibrosis and other chronic respiratory conditions.
This Avalyn IPO initiative reflects growing investor interest in respiratory-focused biotech companies, especially those advancing innovative drug delivery technologies.
Focus on Inhaled Lung Disease Therapies
Avalyn is building a strong pipeline centered on inhaled formulations that aim to improve efficacy while reducing systemic side effects. By delivering drugs directly to the lungs, Avalyn enhances treatment precision.
Key benefits of Avalyn’s approach include:
- Targeted drug delivery to affected lung tissues
- Reduced systemic toxicity
- Improved patient compliance
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