$175m raised by Avalyn Pharma in Series C financing for inhalation therapies

US-based clinical stage biopharmaceutical company Avalyn Pharma has announced that it has raised $175m in Series C financing to continue its portfolio of inhalation therapies.
The inhaled pulmonary fibrosis programmes aim to improve upon currently approved medications and advance lead clinical assets AP01 (inhaled pirfenidone) and AP02 (inhaled nintedanib) into mid-stage clinical trials. While systemic exposure to oral pirfenidone has been shown to induce significant side effects such as nausea, photosensitivity and fatigue, inhaled pirfendone has been well tolerated, as well as showing enhanced efficacy.
The financing was co-led by Perceptive Xontogeny Venture Funds, SR One and Eventide Asset Management. These companies were joined by new investors Catalio Capital Management, Piper Heartland, Rock Springs Capital, funds and accounts advised by T. Rowe Price Associates Inc, Surveyor Capital (a Citadel Company), Vida Ventures and Wellington Management. Current investors included F-Prime Capital, Norwest Venture Partners, Novo Holdings A/S, Pivotal bioVenture Partners and RiverVest Venture Partners.
Gianna Hoffman-Luca PhD at Perceptive Xontogeny Venture Funds and Jill Carroll at SR One joined Avalyn’s Board of Directors.
Dr Hoffman-Luca stated: “We at Perceptive Xontogeny Venture Funds are particularly compelled by the clinical data with AP01 showing preserved forced vital capacity in pulmonary fibrosis and significantly fewer side effects than oral pirfenidone. Avalyn’s business and scientific approach is highly differentiated and we are proud to support the next phase of growth.”
Lyn Baranowski, CEO of Avalyn, commented: “Pulmonary fibrosis is a fatal disease with a median survival of only three to five years. Fewer than 30% of patients in the US are treated with either of the two approved oral medicines today due to their significant tolerability challenges. There is an urgent need for effective treatments that patients can tolerate, which we believe can be addressed with inhaled delivery. In fact, our existing clinical data shows potential for both improved tolerability and efficacy. We are thrilled to have the support of such an esteemed group of investors to help realise our mission and impact patients’ lives.”
Ms Carroll from SR One, added: “The combination of the pipeline and data with such an accomplished team, with a track record of biotech leadership and pulmonology drug development, gives us faith in what Avalyn is trying to accomplish. I am excited to work with the leadership team and Board to help advance these programs and deliver a new era of respiratory treatments that could be paradigm changing.”