Aardvark’s IPO stumbles as shares fall on first day of trading

USA – Aardvark became the fifth biotech company to go public on NASDAQ this year, but its market debut fell short of expectations.

The drugmaker raised US $94.2 million on Wednesday by selling 5.9 million shares at US $16 each—the lowest end of its expected price range of $16 to US $18. Had the shares been priced at the midpoint, the company would have raised US $100.1 million.

The challenges continued on Thursday as Aardvark’s stock dropped more than 10% on its first full day of trading.

Aardvark’s drug pipeline and development plans

Aardvark is developing treatments that target Bitter Taste Receptors (TAS2Rs) in the gut to help regulate hunger signals.

Its lead drug candidate, ARD-101, is a small-molecule oral medication designed to activate specific TAS2Rs.

The drug is currently in Phase III clinical trials for hyperphagia, a condition linked to excessive hunger, in patients with Prader-Willi syndrome (PWS).

In addition, the company is working on ARD-201, a fixed-dose combination of ARD-101 and a DPP-4 inhibitor, aimed at treating obesity and related conditions. Aardvark plans to start a Phase II trial for ARD-201 in the second half of this year.

A mixed year for biotech IPOs

Aardvark’s IPO performance contrasts sharply with that of Metsera, another biotech focused on metabolic diseases.

Metsera raised US $275 million in January, making it the largest biotech IPO of the year so far. Its shares have surged by more than 66% since going public, driven by excitement over its once-a-month GLP-1 agonist for weight loss.

Overall, biotech IPOs in 2025 have had mixed results. Sionna Therapeutics, a company developing treatments for cystic fibrosis, has seen its stock rise by more than 12% since its debut last week.

However, Maze Therapeutics, which is working on treatments for kidney disease, has struggled. Its stock has dropped about 29% since its IPO.

Meanwhile, Ascentage Pharma, the first biotech to go public on NASDAQ this year, has mostly traded flat.

The IPO pipeline has also been relatively quiet, with no new biotech filings since Aurion Biotech, a cell therapy developer, joined the queue in late January.

Odyssey Therapeutics, which focuses on autoimmune and inflammatory diseases, is also waiting for its turn.