Avalyn Pharma raises $300M in IPO to fund inhalable lung-fibrosis drugs

Avalyn Pharma completed a $300 million initial public offering, pricing 16.7 million shares at $18 each and exceeding its original $200 million target.

The proceeds will be used to develop inhalable versions of existing therapies for idiopathic and progressive pulmonary fibrosis, a rare lung disease that affects an estimated 300,000 people in the United States.

The company will begin trading on the Nasdaq under the ticker symbol AVLN. This offering marks the eighth IPO for a young drugmaker in 2026, with median proceeds of $309 million among similar listings.

Investors view the surge in biotech IPO capital as expanding opportunities for emerging companies, and Avalyn aims to broaden its pipeline of treatments for hard-to-treat lung conditions.