Aardvark Therapeutics Prices IPO at $16 Per Share, Set to Trade on Nasdaq

Aardvark Therapeutics, Inc. (AARD) has priced its initial public offering (IPO) at $16 per share, with the stock expected to begin trading on the Nasdaq Global Select Market on February 13, 2025. The company is offering 5,888,000 shares, with gross proceeds expected to be approximately $94.2 million. The offering is expected to close on February 14, 2025, subject to customary closing conditions. Morgan Stanley, BofA Securities, Cantor, and RBC Capital Markets are acting as joint book running managers for the offering.

Aardvark Therapeutics is a clinical-stage biopharmaceutical company focused on developing novel, small-molecule therapeutics to activate innate homeostatic pathways for the treatment of metabolic diseases. Its 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. This potential first-in-class oral investigational drug demonstrated clinical activity and was well-tolerated in Phase 2 trials and has entered Phase 3 development for hyperphagia associated with Prader-Willi Syndrome, for which Aardvark has been granted Orphan Drug Designation. Additionally, Aardvark intends 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.



Aardvark is also developing ARD-201, which will be a fixed-dose combination of ARD-101 with a dipeptidyl peptidase-4 (DPP-4) inhibitor, with a goal of addressing some of the limitations of currently marketed GLP-1 therapies for the treatment of obesity and obesity-related conditions.

The IPO comes at a time when biopharmaceutical companies targeting metabolic and rare genetic disorders are gaining significant attention. Aardvark's innovative approach to hunger regulation through gut-restricted therapeutics could disrupt traditional treatments. Key reasons this IPO is worth following include addressing unmet needs, significant market potential, emerging growth company status, strong clinical data, and an experienced management team.

However, Aardvark's clinical trials face potential risks and challenges that could impact the company's valuation and future growth prospects. These include unpredictable clinical trial outcomes, safety and efficacy concerns, regulatory approval risks, competition, and financial risks. To mitigate these risks, Aardvark should focus on maintaining strong communication with investors, ensuring the safety and efficacy of its products, and continuing to innovate and develop its pipeline.

In conclusion, Aardvark Therapeutics' IPO at $16 per share offers investors the opportunity to participate in a clinical-stage biopharmaceutical company with a promising pipeline targeting metabolic disorders and rare conditions. While the company faces potential risks and challenges, its innovative approach and strong clinical data position it well for future growth and success.