Apnimed scouts $160m IPO to support late-stage sleep pill development

Apnimed is eyeing a spot on the Nasdaq exchange through an IPO worth up to $160 million, which will support the company as it looks to launch its potential “best-in-class” therapy in the US sleep apnea (OSA) market.

Through its public market launch, which will see the biotech trading in Massachusetts under the ticker ‘APMD’, Apnimed will offer 10,000,000 of its shares at a price between $14 and $16 per unit to future buyers, which includes the potential of this fundraising up to $160 million. This total could increase further, however, as Apnimed plans to offer an additional 1,500,000 shares – potentially allowing the company to bank an additional $24m subject to underwriter interest.

With the IPO funds, Apnimed plans to devote the main cash to bring its lead candidate, oxnimbi, to the OSA market – devoting approximately $228.8m from the IPO and existing funds to support the regulatory process and potential commercialization of the drug. On top of its efforts to commercialize oxnimbi, Apnimed plans to use some of the remaining cash from the IPO to fund its R&D activities for additional drug candidates.

The biotech has designed oxnimbi, otherwise known as AD109, to increase muscle activity in the upper airway to prevent the airway from collapsing during sleep. The drug is being reviewed by the US Food and Drug Administration (FDA) for potential approval in OSA, with the regulator planning to call oxnimbi before February 28, 2027 based on the positive data Apnimed submitted from the Phase III program of the drug in the condition.

Fix unmet requirements in OSA

While many device-based treatment options are available to patients for OSA, a significant portion of those with the condition are unsuitable or unwilling to use a continuous positive airway pressure (CPAP) machine, which works by keeping the airway open during sleep.

If the FDA approves oxnimbi, the drug will become the first oral treatment to reach the OSA market, which generally remains until 2024, when Eli Lilly’s weight loss drug, Zepbound (tirzepatide), becomes the first drug to secure approval in OSA.

The approval of Zepbound offers obese patients the first new treatment option for this condition. However, according to the 2024 review published in Sleeping pills. Just over a third of patients with OSA are considered clinically obese, meaning many patients are not eligible for Zepbound in this setting.

By launching the right treatment for all types of OSA, regardless of the patient’s weight, Apnimed hopes that oxnimbi will become the best treatment for the condition, which currently affects 936 million people worldwide.