Aardvark Raises $94.2 Million in IPO to Advance PWS Therapy

Rare Daily Staff

Aardvark Therapeutics, which is developing small-molecule therapies for metabolic diseases, has priced a $94.2 million initial public offering.

The company, which has a phase 3 therapy in development to treat the intense hunger in people with Prader-Willi syndrome, sold 5.9 million shares of its common stock at an offering price of $16.00 per share, the bottom end of its expected range. All of the shares were offered by Aardvark.

Aardvark is the sixth biopharmaceutical to go public this year, according to data from Renaissance Capital. It followed cystic fibrosis drug developer Sionna Therapeutics $191 million IPO earlier this month. Aardvark ended its first trading day at down $1.69 to close at $14.31, a 10.6 percent decline.

Aardvark’s common stock is trading on the Nasdaq Global Select Market on February 13, 2025 under the ticker symbol “AARD.” Aardvark has granted the underwriters a 30-day option to purchase up to an additional 883,200 shares of common stock at the public offering price, less underwriting discounts and commissions.

Aardvark’s is focused on developing novel therapeutics to activate innate homeostatic pathways for the treatment of metabolic diseases. Its portfolio of small molecule programs targets biological pathways associated with alleviating hunger.

Prader-Willi syndrome (PWS) is a rare, severe neuro-developmental disorder that is caused by the loss of function of several genes located on chromosome 15. PWS impacts multiple organ systems and is characterized by metabolic, endocrine, and neurological dysfunction. One of the hallmark characteristics of PWS is hyperphagia-driven extreme and unrelenting hunger accompanied by developmental delays and musculoskeletal malformations. There are currently no approved therapies for the treatment of hyperphagia, which affects the health and quality of life of children and adults with PWS.

The company’s lead product candidate, ARD-101, targets Bitter Taste Receptors (TAS2Rs) expressed in the gut lumen, inducing secretion of endogenous signaling molecules, including the satiety hormone cholecystokinin (CCK), which in turn activates gut-brain signals to suppress the sensation of hunger.

The potential first-in-class oral investigational drug demonstrated clinical activity and was well-tolerated in phase 2 trials. The U.S. Food and Drug Administration granted Aardvark’s ARD-101 Orphan Drug designation.

Aardvark plans to advance ARD-101 into phase 2 development for hyperphagia associated with hypothalamic obesity, with a goal of addressing significant unmet needs across both these rare disease indications.