Avalyn Pharma filed to pursue an IPO to fund Phase 3 trials for inhaled respiratory therapies for idiopathic pulmonary fibrosis. The biotech’s lead program, AP01, is an inhaled formulation of pirfenidone that is in a Phase 2b study (NCT06329401), with plans to move into Phase 3 using expected IPO proceeds. The company also is advancing AP02, an inhaled form of nintedanib, and AP03, a preclinical inhaled combination of pirfenidone plus nintedanib designed to address additive side-effect limitations seen with oral co-administration. Avalyn said it had $138 million in cash at the start of 2026 and employs 51 full-time staff. For the sector, the filing reflects continued market appetite for late-stage reformulations of established drugs—especially where inhalation may improve tolerability and targeting compared with existing oral dosing regimens.