Clinical-stage biotech company Avalyn Pharma (AVLN.US), which focuses on developing inhaled therapies for rare respiratory diseases, disclosed the terms of its initial public offering on Thursday. The Boston, Massachusetts-based firm plans to raise $201 million by offering 11.8 million shares within a price range of $16 to $18 per share.

Avalyn Pharma is dedicated to creating inhaled anti-fibrotic treatments for rare respiratory conditions, particularly pulmonary fibrosis. Its lead drug candidates, AP01 and AP02, are inhaled formulations of pirfenidone and nintedanib, respectively. These are designed to deliver approved anti-fibrotic medications directly to the lungs, enhancing local drug exposure while minimizing systemic side effects.

AP01 targets idiopathic pulmonary fibrosis (IPF) and progressive pulmonary fibrosis (PPF). It has completed the Phase 1b ATLAS clinical trial, and participants are transitioning into an ongoing open-label extension study that also includes other IPF and PPF patient groups. AP02, an inhaled version of nintedanib for treating pulmonary fibrosis, is currently in development. This candidate will expand the company's pipeline to cover the two most commonly used anti-fibrotic mechanisms.

It is noteworthy that while the company is not yet profitable and reported a net loss of $85.2 million for 2025 due to increased clinical development expenses, it has strong financial backing to support continued research. Prominent healthcare investment firm Novo Holdings, the parent company of Novo Nordisk, is a major institutional shareholder with approximately 13% ownership. Since its founding in 2011, Avalyn has secured over $380 million in private equity investment.

Avalyn Pharma, established in 2011, plans to list on the Nasdaq under the ticker symbol AVLN. Morgan Stanley, Jefferies, Evercore ISI, and Guggenheim Securities are serving as joint book-running managers for the offering. Pricing is expected during the week of April 27, 2026.