Aardvark Therapeutics Raises $94M in IPO to Advance Obesity Treatment Pipeline

Aardvark Therapeutics, a biotech company focused on developing novel treatments for obesity, has successfully completed its initial public offering (IPO) on the Nasdaq, raising $94.2 million in gross proceeds. The company, which will trade under the ticker "AARD," offered 5.9 million shares at $16 each, matching the lower end of its previously announced range of $16 to $18 per share.

ARD-101: A Novel Approach to Appetite Suppression

At the forefront of Aardvark's pipeline is ARD-101, a bitter taste receptor (TAS2R) pan-agonist designed to stimulate enteroendocrine cells in the digestive tract. This innovative compound aims to trigger the release of gut-peptide hormones, including GLP-1 and cholecystokinin, which are known to play crucial roles in appetite regulation and satiety.

ARD-101 has shown promising results in early clinical trials, demonstrating its ability to suppress appetite both as a standalone treatment and in combination with established weight loss drugs from pharmaceutical giants Novo Nordisk and Eli Lilly. In a phase 2 study involving 20 patients with general obesity, ARD-101 achieved a 2.51-fold greater reduction in hunger ratings compared to placebo.

Expanding Indications and Combination Therapies

Aardvark's clinical program extends beyond general obesity, with the company exploring ARD-101's potential in rare genetic conditions and specific patient populations:

• A study of 12 patients with Prader-Willi syndrome, a rare genetic disorder characterized by constant hunger, showed that 11 participants experienced reduced severe hunger over 28 days of treatment with ARD-101.
• The company plans to initiate a phase 2 study investigating ARD-101 for severe hunger and obesity associated with craniopharyngioma, a type of brain tumor.

Additionally, Aardvark is developing ARD-201, a fixed-dose combination of ARD-101 and a DPP-4 inhibitor, further expanding its obesity treatment portfolio.

Market Reception and Future Prospects

Aardvark's successful IPO comes amid growing investor interest in the obesity treatment market. The company's debut follows the recent public offering of Metsera, another obesity-focused biotech, which saw its stock price surge 76% since its January 31 listing.

With the proceeds from the IPO, Aardvark plans to advance the clinical development of ARD-101 and continue work on ARD-201. The company's innovative approach to appetite suppression and its expanding pipeline position it as a potential key player in the rapidly evolving landscape of obesity therapeutics.