Apnimed has raised $192 million for its upsized IPO, with the proceeds earmarked to fund the launch of its sleep apnea pill.
The Massachusetts-based company had set out plans earlier this week to offer 10 million shares priced between $14 and $16 apiece. The biotech announced Thursday evening that it is now offering 12 million shares, priced at the top end of this range.
It means the IPO is set to rake in $192 million in gross proceeds—above the $134.6 million that the company had estimated on Monday. This haul could rise by a further $28.8 million if underwriters fully take up their option to buy an additional 1.8 million shares at the same price.
Apnimed’s obstructive sleep apnea (OSA) therapy, Oxnimbi or AD109, is currently awaiting an FDA approval decision, with an answer from the regulator expected by February 2027. The daily pill has aced two phase 3 trials, including most recently cutting the number of nightly breath-stopping events by 46.8% in a study of 660 patients.
The most common treatment for sleep apnea is a CPAP machine, which requires wearing an awkward mask all night. Should Oxnimbi get approved, it would become the first prescription drug designed specifically for the many millions of adults with sleep apnea. While Eli Lilly’s Zepbound became the first ever FDA-approved sleep apnea med in December 2024, it was only okayed for adults who also have obesity.
Oxnimbi is a combination of aroxybutynin, a novel antimuscarinic; and atomoxetine, a noradrenaline reuptake inhibitor that is also used in attention-deficit/hyperactivity disorder. The pill targets the motor neurons that control breathing during sleep and boosts their activity so that the throat muscles don’t relax, which disrupts breathing in patients with sleep apnea.
Apnimed has been prepping for Oxnimbi’s launch for some time, bringing Pfizer veteran Graham Goodrich on board as chief commercial officer at the beginning of 2024.
Apnimed had also been running a joint venture with Shionogi since 2023, with the companies kicking off a phase 2a trial of a sleep disorder candidate last year while adding a second asset to that entity’s pipeline. However, Apnimed agreed to sell its side of the venture to Shionogi for $100 million upfront in March.
Apnimed’s upsized IPO this morning is a reminder of the healthy reception biotechs continue to receive on the public markets in a year that has seen record-breaking listings from the likes of Parabilis Medicines and Kailera Therapeutics.
Beyond Apnimed, the likes of Braveheart Bio, Attovia Therapeutics and Vogenx have all lined up their own imminent listings.