Soleno Therapeutics (SLNO, Financial) recently caught the attention of TD Cowen analyst Tyler Van Buren, who initiated coverage with a Buy rating and set a price target of $110. The firm's optimism is driven by the success of Vykat XR, the first approved treatment addressing hyperphagia in individuals with Prader-Willi syndrome. This achievement marks a significant milestone in overcoming past clinical challenges associated with the condition.
According to the analyst, Soleno's management is well-prepared to capitalize on this opportunity with a robust launch strategy, targeting the considerable patient population. The enthusiasm within the Prader-Willi community is expected to contribute to substantial adoption of the treatment, as highlighted in the research note. The potential for significant market penetration is attracting positive attention from investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Soleno Therapeutics Inc (SLNO, Financial) is $107.67 with a high estimate of $145.00 and a low estimate of $81.00. The average target implies an upside of 36.74% from the current price of $78.74. More detailed estimate data can be found on the Soleno Therapeutics Inc (SLNO) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Soleno Therapeutics Inc's (SLNO, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
SLNO Key Business Developments
Release Date: May 07, 2025
- Cash Used in Operating Activities: $32.8 million for the three months ended March 31, 2025.
- Ending Cash, Cash Equivalents, and Marketable Securities: $290 million as of March 31, 2025.
- Research and Development Expenses: $13.5 million for Q1 2025, including $4.3 million of noncash stock-based compensation.
- Selling, General, and Administrative Expenses: $29.3 million for Q1 2025, including $10.4 million of noncash stock-based compensation.
- Total Other Income Net: $2.0 million for the three months ended March 31, 2025.
- Net Loss: $43.8 million or $0.95 per basic and diluted share for Q1 2025.
- Patient Start Forms Received: 268 start forms in 29 business days since approval.
- Number of Unique Prescribers: 131 as of the end of the reporting period.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- FDA approval of Vykat XR as the first treatment for hyperphagia in Prader-Willi syndrome (PWS) patients aged 4 and older.
- Successful and rapid commercial launch of Vykat XR, with the first patient receiving treatment ahead of schedule.
- Strong initial market response with 268 patient start forms received within 29 business days post-approval.
- Broad prescriber base with 131 unique prescribers, indicating widespread acceptance and interest.
- Sufficient cash reserves of $290 million to fund operations through cash flow breakeven, with additional $75 million available under a loan agreement.
Negative Points
- No revenue generated in the first quarter of 2025 as Vykat XR was not yet commercialized.
- Significant net loss of $43.8 million for the first quarter, compared to $21.4 million in the same period of 2024.
- High selling, general, and administrative expenses of $29.3 million, reflecting increased investment in personnel and programs.
- Potential delays in revenue recognition due to the lag between receiving start forms and specialty pharmacy orders.
- Uncertainty in payer coverage policies, which can take three to six months or longer to develop and implement.
