Biotech company Aardvark Therapeutics successfully completed its initial public offering (IPO) on Wednesday evening, securing $94.2 million in funding to advance its drug development programs targeting Prader-Willi syndrome and obesity-related conditions.
The company offered approximately 5.9 million shares at $16 each, landing at the lower end of its anticipated price range. Trading of Aardvark’s shares will commence Thursday on the Nasdaq exchange under “AARD.”
This offering marks 2025’s fifth biotech IPO, contributing to a broader uptick in public market debuts across industries. January saw 17 U.S. companies go public, exceeding the ten-year average, according to analysis from Renaissance Capital.
Aardvark’s lead drug candidate, ARD-101, targets bitter taste receptors that play a role in metabolism and inflammation regulation. The drug works by stimulating these receptors to trigger the release of cholecystokinin, a hormone that helps suppress appetite. While previous attempts to develop treatments targeting these receptors faced safety challenges, Aardvark claims its approach is safer because ARD-101 specifically targets receptors located in the gut.
The drug development program addresses an important unmet need in Prader-Willi syndrome, a rare condition affecting between 10,000 and 20,000 Americans that causes uncontrollable hunger (hyperphagia). Despite multiple attempts by pharmaceutical companies, developing effective treatments for hyperphagia has proven challenging, with several candidates either failing in clinical trials or facing regulatory rejection.
Following promising Phase 2 results in 2023, Aardvark has worked with the FDA to design a pivotal late-stage trial. Results from this study are expected in early 2026. The company also plans to evaluate ARD-101 in patients with obesity related to brain cancer treatment, with a mid-stage trial scheduled to begin later this year.
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 hypothesizes this combination could enhance the effects of popular weight-loss medications like Wegovy, though this potential benefit remains to be proven in clinical studies. A Phase 2 trial exploring this approach in obesity and related conditions is planned for later this year.
The biotech IPO landscape in 2025 has maintained a pace similar to the previous three years, though the size of offerings has increased. This year’s IPOs have generated median proceeds of $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 comes shortly before a potential milestone in Prader-Willi syndrome treatment. The FDA is expected to decide by the end of March on Soleno Therapeutics’ hyperphagia drug, which could become the first approved treatment specifically targeting this aspect of the condition. Currently, available treatments for Prader-Willi syndrome focus on managing symptoms and preventing complications rather than addressing the underlying hyperphagia.
The successful IPO positions Aardvark to advance its clinical programs while potentially establishing itself as a key player in the development of treatments for both rare and common metabolic conditions. The company’s approach of targeting bitter taste receptors represents a novel mechanism in the increasingly important field of appetite control and weight management therapeutics.