Avalyn Pharma (AVLN.US), a clinical-stage biotechnology company focused on developing inhaled therapeutics for rare respiratory diseases, has priced its initial public offering at $18 per share. The company raised $300 million by issuing 16.7 million shares, with the pricing at the top end of the previously announced $16 to $18 range. Avalyn initially planned to offer 11.8 million shares within the same price range but increased the offering size on April 29. At the $18 pricing, the company's fully diluted market valuation reaches $813 million. Avalyn's shares are expected to begin trading on the Nasdaq Global Select Market on Thursday, April 30.

As a clinical-stage biotech firm, Avalyn Pharma is dedicated to creating inhaled anti-fibrotic therapies for rare respiratory conditions, particularly pulmonary fibrosis. Its lead drug candidates, AP01 and AP02, are inhaled formulations of pirfenidone and nintedanib, respectively. These therapies are designed to deliver approved anti-fibrotic medicines directly to the lungs, aiming to enhance local drug exposure while reducing systemic side effects.

AP01, which targets idiopathic pulmonary fibrosis (IPF) and progressive pulmonary fibrosis (PPF), has completed the ATLAS phase 1b clinical trial. Patients from this trial are now transitioning into an ongoing open-label extension study, which also includes additional cohorts of IPF and PPF patients. AP02, an inhaled version of nintedanib, is being developed for the treatment of pulmonary fibrosis, broadening the company's pipeline to cover two major anti-fibrotic mechanisms.

Proceeds from the IPO will be used primarily to advance late-stage clinical studies for the company's core pipeline. The lead program, AP01, is currently in a phase 2b clinical trial for IPF and PPF, while AP02, another inhaled candidate for IPF, has entered phase 2 clinical development. The increased funding from this offering provides a solid financial foundation for these capital-intensive clinical programs. Furthermore, the company has previously secured backing from top-tier biopharmaceutical venture investors, including Novo Holdings, the parent company of Novo Nordisk. The strengthened balance sheet post-IPO is expected to support Avalyn's transition from a research-focused entity toward commercialization.

The Boston, Massachusetts-based company will list on the Nasdaq under the ticker symbol "AVLN." Morgan Stanley, Jefferies, Evercore ISI, and Guggenheim Securities acted as joint book-running managers for the offering.