Sleep specialist Apnimed announced on July 28 that it is pursuing an initial public offering to support the potential launch of its sleep apnea drug. The company is offering 10 million shares of common stock, priced between $14 and $16 each, according to a July 27 prospectus. At the upper end of this range, Apnimed could raise approximately $160 million in gross proceeds, with net earnings expected around $134 million after expenses.
The company is also giving underwriters the option to purchase up to 1.5 million additional shares at the IPO price. If this option is fully exercised, net proceeds could reach about $155.5 million. Upon completion of the offering, Apnimed will be listed on the Nasdaq Global Market under the symbol APMD.
Most of the funds from the IPO are earmarked for AD109, Apnimed’s lead clinical program targeting neuromuscular dysfunction in patients with obstructive sleep apnea (OSA). Earlier this month, the Food and Drug Administration accepted AD109 for review, with a decision expected by Feb. 28, 2027. If approved, AD109—branded as Oxnimbi—could become the first oral medication specifically addressing neuromuscular causes behind upper airway issues in OSA patients.
Data from a Phase 3 trial showed that AD109 reduced patients’ apnea-hypopnea index by 55.6% over 26 weeks compared to baseline and performed significantly better than placebo in improving oxygenation and treatment response rates.
In addition to preparing for its IPO, Apnimed signed a debt financing agreement with HealthCare Royalty Partners in April for up to $150 million intended to help prepare for launching AD109 if it receives approval.
The move comes amid renewed activity in biotech initial public offerings after a slow year in 2025; eighteen companies have gone public so far this year—more than double last year’s total—with several others lined up alongside Apnimed.
