Avalyn Pharma, a biotechnology company specializing in lung fibrosis, priced its IPO at $18 and raised $300 million. It will debut on the Nasdaq tonight.

Avalyn Pharma (AVLN.US) is a biotechnology company in Phase II clinical trials, focused on developing inhaled drugs for the treatment of rare respiratory diseases. The company raised $300 million by issuing 16.7 million shares at a price of $18 per share, which was at the upper limit of the previously announced $16 to $18 per share range. Originally planning to issue 11.8 million shares at the same price range, the company expanded the offering on April 29th. Based on this pricing, the fully diluted market value of the company is $813 million. Avalyn's stock is expected to start trading on the Nasdaq Global Select Market on April 30th (Thursday). As a clinical-stage biotechnology company, Avalyn Pharma is dedicated to developing inhaled anti-fibrotic therapies for rare respiratory diseases, especially pulmonary fibrosis. Its core drug candidates AP01 and AP02 are inhaled 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, targeting idiopathic pulmonary fibrosis (IPF) and progressive pulmonary fibrosis (PPF), has completed the ATLAS 1b phase I clinical trial, with participating patients transitioning to an ongoing open-label extension study that also includes additional IPF and PPF patient cohorts. AP02, an inhaled formulation of nintedanib, is being developed for the treatment of pulmonary fibrosis, expanding the company's product line in the two major anti-fibrotic mechanism areas. The funds raised from this IPO will mainly be used to advance the late-stage clinical research of the company's core pipeline. The lead project, AP01, is currently undergoing a Phase 2b clinical trial for IPF and PPF; another inhaled formulation, AP02, targeting IPF, has also entered Phase 2 clinical trials. The expanded fundraising provides a solid financial moat for these high-cost clinical studies. Additionally, the company has already received support from top biopharmaceutical venture capital firms, including Novo Nordisk A/S Sponsored ADR Class B parent company Novo Holdings, and the financial strength post-IPO will further drive its transition from a research-based company to the commercialization stage. Headquartered in Boston, Massachusetts, the company will be listed on the Nasdaq under the stock symbol AVLN. Morgan Stanley, Jefferies Financial Group Inc., Evercore ISI, and Guggenheim Securities are acting as joint book-running managers for this offering.