Avalyn seeks $300m from its IPO
Avalyn Pharma has priced its initial public offering (IPO) on the Nasdaq, hoping to raise an upscaled $300 million for its inhaled therapies for respiratory diseases.
The company confirmed today it plans to offer more than 16.6 million shares at $18 apiece, well ahead of its earlier predictions of less than $12 million shares at a range of $16 to $18, which would have netted around $180 million. Avalyn is planning to list on the Nasdaq under the AVLN symbol.
According to Renaissance Capital, getting the IPO over the line at that price will value Avalyn at around $813 million. There's also an additional option for the underwriters to buy another 2.4 5 million shares in the company, which could swell the return by another $45 million.
Boston-based Avalyn is developing inhaled versions of two FDA-approved oral kinase inhibitor therapies for idiopathic pulmonary fibrosis (IPF) – Boehringer Ingelheim's Ofev (nintedanib) and Roche's Esbriet (pirfenidone) – which have dominated treatment, making blockbuster sales, although generic competitors are now available.
Pulmonary fibrosis (PF) is a life-threatening disorder, characterised by scarring of lung tissue that affects lung function, and has a median survival of just three to five years, making it more deadly than many kinds of cancer. It affects an estimated three million people around the world.
Avalyn's lead candidates AP01 (pirfenidone) and AP02 (nintedanib), in phase 2 clinical trials, are designed to deliver the kinase inhibitor drugs directly to the lungs to improve local drug exposure, reduce systemic side effects, and potentially improve efficacy.
AP01 has completed the phase 1b ATLAS study in IPF and has also started an open-label extension in progressive pulmonary fibrosis (PPF), another form of the disease, as well as a phase 2b PPF trial called MIST. AP02 has cleared phase 1 testing and is in the phase 2 AURA trial in IPF, while a dual inhaled therapy based on both active compounds (AP03) is being prepared for initial human testing later this year.
Seaport and Hemab price as well
Two other biotechs in the IPO queue, Seaport Therapeutics and Hemab Therapeutics, also priced their Nasdaq listings this week.
PureTech health-incubated Seaport said it is offering 11.8 million shares priced between $16 and $18 each, hoping to raise more than $183 million, with another $27.9 million possible if underwriters exercise their option. The Boston company plans to use the funds to progress clinical development of its lead major depressive disorder (MDD) candidate GlyphAllo (SPT-300) – an oral prodrug of now-discontinued intravenous drug allopregnanolone.
Meanwhile, Cambridge, Massachusetts-based Hemab is offering 11.7 million shares – also in the $16 to $18 range – which could raise upwards of $180 million for clinical trials of sutacimig, a bispecific antibody in development for bleeding disorder Glanzmann thrombasthenia (GT) and Factor VII deficiency, and HMB-002 for von Willebrand disease.
The two companies are planning to list on the Nasdaq under the SPTX and COAG symbols, respectively.
