Avalyn Pharma has filed for an IPO to fund Phase 3 development of inhaled therapies aimed at idiopathic pulmonary fibrosis (IPF) and progressive pulmonary fibrosis. The company’s lead candidate, AP01, is an inhaled formulation of pirfenidone that is advancing from a Phase 2b study (NCT06329401), and AP02 is an inhaled version of nintedanib, also supported by an ongoing Phase 2 program. Avalyn is additionally developing AP03, an inhaled combination intended to mitigate the additive side-effect burden seen with the oral pairing. In its filing, Avalyn points to $138 million in cash on hand and a 51-person full-time team as of early 2026, after a $100 million Series D in July 2025, a $175 million Series C in September 2023, and a $35.5 million Series B in April 2020. If executed as planned, the proceeds would move AP01 and AP02 toward Phase 3 milestones and support preparation for a potential clinical start for the combination asset. The move lands as the biotech IPO market has shown signs of improvement earlier in 2026, though activity has remained uneven. The company’s strategy reflects a focus on incremental clinical advancement of formulations of approved drugs—an approach investors have increasingly favored when clinical risk can be bounded by prior efficacy signals in the oral setting.