Avalyn Pharma is exploring an IPO to fund Phase III development of inhaled therapies for pulmonary fibrosis, according to an SEC filing. The company’s lead candidate, AP01, is an inhaled formulation of pirfenidone currently in a Phase 2b study for progressive pulmonary fibrosis, with a planned step to Phase 3 contingent on financing. Avalyn is also developing AP02, an inhaled version of nintedanib, and AP03 as a preclinical combination inhalation strategy intended to address additive side effects observed with the oral drugs. The capital plan reflects the company’s attempt to accelerate a late-stage trajectory in a category crowded by established standards of care. The filing also points to prior fundraising depth, including a $100 million Series D in July 2025, alongside earlier rounds. With 2026 starting cash on hand cited at $138 million and 51 full-time staff, the IPO appears designed to add clinical runway rather than replace it. If successful, the IPO route could become a near-term test of Western public-market appetite for respiratory biotechs moving into pivotal trials.