Avalyn Pharma has raised US$100m in new funding to develop inhaled therapies for rare lung diseases including pulmonary fibrosis.
The clinical-stage biopharmaceutical company, formerly known as Genoa Pharmaceuticals, has now raised around US$300m since its launch in 2011.
Its lead programmes target inhaled versions of existing drugs for pulmonary fibrosis—a condition that causes lung scarring and breathing difficulties—as well as other interstitial lung diseases, which affect tissue surrounding the lungs’ air sacs.
Avalyn’s pipeline includes inhaled formulations of pirfenidone (AP01) and nintedanib (AP02), alongside a fixed-dose combination of the two (AP03). It has completed Phase 1 trials of AP02 and launched a global Phase 2b trial of AP01.
Avalyn chief executive officer Lyn Baranowski said: “Completing a significant round of financing despite the challenging market conditions is a testament to our innovative approach to developing potentially life-saving medicines for patients with pulmonary fibrosis.
“We’ve made tremendous progress across our entire portfolio, completing Phase 1 clinical trials of AP02 and initiating a global Phase 2b clinical trial of AP01.”
The company said it will use the proceeds to progress late-stage development of AP01 and AP02 and move AP03 into Phase 1 trials.
Fifteen of the 18 investors in the new round had also taken part in Avalyn’s US$175m Series C. The company believes its inhaled formulations may deliver drugs at lower doses with fewer side effects than oral treatments such as Boehringer Ingelheim’s Ofev or Roche’s Esbriet.
As part of the investment, David Friedman, managing director of Suvretta Capital, has joined Avalyn’s board, and Diamantis Xylas, partner and head of research at Catalio Capital, has been named board observer.
Friedman said: “Avalyn is at an exciting point in its evolution with multiple transformative product opportunities in clinical development, each with significant commercial potential.
“The clinical data generated to date for AP01 and AP02 are clinically compelling on their own, but when compared to the data for the currently approved oral treatments, they support the potential for Avalyn to achieve disease modification for patients with pulmonary fibrosis.”