Avalyn Pharma seeks capital for studies of its inhaled drugs

US biotech Avalyn Pharma is looking to launch an initial public offering (IPO) to raise the necessary funding to support its lead drug, AP01, for pivotal clinical trials, according to bioxconomy.com.

AP01 is an inhaled formulation of pirfenidone, a widely used oral drug for the treatment of idiopathic pulmonary fibrosis (IPF). The drug is currently in a Phase IIb trial for progressive pulmonary fibrosis. According to a filing by the company with the US Securities and Exchange Commission (SEC), AP01 is poised to enter Phase III studies once it receives anticipated proceeds from the IPO.

The biotech is also developing AP02, an inhaled version of nintedanib, another idiopathic pulmonary fibrosis drug marketed as Ofev and oral Vargatef. Avalyn is also developing AP03, a preclinical drug that combines pirfenidone and nintedanib in an inhaled formulation. Such a combination therapy aims to eliminate the additional side effects that have hindered the combination of these drugs in their oral forms.

• Other fundraising efforts

Avalyn has also conducted fundraising efforts. According to the source cited, the company raised $100 million in a Series D round in July 2025. This followed a $175 million Series C round in September 2023 and a $35.5 million Series B round in April 2020. The SEC filing states that the company entered 2026 with $138 million and 51 employees.

Avalyn Pharma is led by CEO Lyn Baranowski, who previously worked at Pearl Therapeutics, where she helped develop treatments later acquired by AstraZeneca and marketed under the names Breztri and Bevespi.