A biotechnology company focused on developing drugs to suppress hunger has successfully completed its initial public offering (IPO), raising $94 million through the sale of 5.9 million shares at $16 each. Aardvark Therapeutics, which will trade under the ticker symbol “AARD” on the Nasdaq exchange, plans to use the proceeds to advance its drug development programs targeting Prader-Willi syndrome and
obesity-related conditions.
The company’s IPO marks the fifth biotech public offering of 2025, contributing to an active January that saw 17 U.S. IPOs across all sectors, exceeding the ten-year average according to Renaissance Capital.
Aardvark’s lead drug candidate, ARD-101, represents a novel approach to treating Prader-Willi syndrome, a rare genetic condition
characterized by uncontrollable hunger known as hyperphagia. The condition, affecting approximately 10,000 to 20,000 Americans, has proven challenging for pharmaceutical companies, with several previous treatment attempts either failing in clinical trials or facing regulatory rejection.
The company’s therapeutic strategy involves targeting specific bitter taste receptors that are present not only in the mouth but also in other tissues throughout the body. These receptors play a role in metabolic regulation and inflammation. ARD-101 works by triggering the release of cholecystokinin, a hormone that helps suppress appetite. Unlike previous attempts to target these receptors, Aardvark claims their approach is safer because it specifically targets receptors located in the gut.
Following promising Phase 2 results in 2023, Aardvark has worked with the Food and Drug Administration to design a pivotal late-stage trial. Results from this study are anticipated in early 2026. The company is also planning to initiate a mid-stage trial later this year to evaluate ARD-101’s potential in treating obesity related to brain cancer treatment.
Additionally, Aardvark is developing a combination therapy that pairs ARD-101 with a DPP-4 inhibitor, a class of drugs commonly used in diabetes treatment. The company suggests this combination could potentially enhance the effects of popular weight-loss medications like Wegovy, though this hypothesis remains to be tested. Clinical trials for this combination therapy in obesity and related conditions are scheduled to begin later this year.
The current biotech IPO landscape shows similarities to recent years in terms of frequency, though the size of offerings has increased. The median proceeds from 2025 IPOs have reached $140 million, compared to $129 million during the same period last year and $88 million in 2023.
The timing of Aardvark’s market entry is notable, as it coincides with potential changes in the Prader-Willi treatment landscape. The FDA is currently reviewing a hyperphagia drug from Soleno Therapeutics, with a decision expected by the end of March. Currently, patients with Prader-Willi syndrome rely on symptom management and complication prevention, as no approved treatments directly address the hyperphagia associated with the condition.
Aardvark’s public offering reflects continued investor interest in biotechnology companies developing innovative approaches to
challenging medical conditions, particularly in the metabolic disease space. The company’s focus on both rare diseases and more common obesity-related conditions positions it to potentially address significant unmet medical needs, though success will ultimately depend on the results of upcoming clinical trials and regulatory decisions.