Avalyn Pharma filed for an IPO to fund late-stage development of inhaled formulations of approved pulmonary fibrosis drugs. The company is preparing to move AP01 (inhaled pirfenidone) from an ongoing Phase 2b study toward Phase 3 and aims to do the same for AP02 (inhaled nintedanib), plus advance AP03, an inhaled combination of pirfenidone and nintedanib, supported by preclinical work. Avalyn said it entered 2026 with $138 million in cash following prior rounds, including a $100 million Series D in July 2025 backed by Novo Holdings and others. The financing reflects investor interest in repurposing and reformulating existing drugs to improve tolerability and potentially expand clinical differentiation. For the sector, the filing reinforces how companies are using public-market access (after a period of IPO volatility) to fund label expansion-by-formulation when assets already have clinical validation in oral form.