Soleno Therapeutics (SLNO) AI Stock Analysis

• Market Cap: $4.31B
• Dividend Yield: N/A
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.48
• Revenue Growth: N/A
• EPS Growth: -43.20%
• Country: US
• Employees: 115
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -0.09
• Shares Outstanding: 52,746,872
• 10 Day Avg. Volume: 967,578
• 30 Day Avg. Volume: 1,316,731
• PEG Ratio: -0.12
• Price to Book (P/B): 7.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -26.05
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -6.20K
• Enterprise Value/Ebitda: -19.53
• 1Y Price Target: $113.78
• Price Target Upside: 44.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 37 Underperform
• Price Target: ―

Soleno Therapeutics shows high risk due to its lack of revenue and reliance on external financing. However, it maintains a solid equity base and is experiencing positive technical momentum, suggesting speculative interest. The valuation is typical for an early-stage biotech, with potential upside reliant on successful R&D outcomes.

Positive Factors

FDA Approval

The FDA's recent approval of Vykat XR for hyperphagia in Prader-Willi Syndrome was an inaugural event for this difficult-to-treat indication.

Market Potential

Assuming an EU approval, peak global Vykat XR sales are modeled at $2.6B, with potential for significant upside due to the urgent unmet need and absence of viable competitors.

Revenue Performance

Soleno reported impressive Vykat XR revenue of $33MM in its first partial quarter, a remarkable beat that speaks to the urgent need for a hyperphagia treatment and Soleno management's commercial prowess.

Negative Factors

Market Competition

The absence of viable competitors in the foreseeable future is crucial for Soleno's market position, yet any new entries could impact this advantage.

Price Strategy

While management appears prepared to execute on a strong launch with a high price tag, the price point could potentially limit broader market adoption.

Soleno Therapeutics Business Overview & Revenue Model

Company Description

Soleno Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutics for the treatment of rare diseases. Its lead candidate is Diazoxide Choline Controlled-Release, a once-daily oral tablet for the treatment of Prader-Willi Syndrome, which is being evaluated in an ongoing Phase III clinical development program. The company was formerly known as Capnia, Inc. and changed its name to Soleno Therapeutics, Inc. in May 2017. Soleno Therapeutics, Inc. was incorporated in 1999 and is based in Redwood City, California.

How the Company Makes Money

Soleno Therapeutics primarily makes money through the development and potential commercialization of its core product, DCCR tablets. The company aims to generate revenue by obtaining regulatory approval for DCCR and subsequently marketing it to healthcare providers and patients. Revenue streams are anticipated to include product sales, licensing agreements, and potential partnerships with pharmaceutical companies for distribution and commercialization. Soleno's financial performance is heavily dependent on the successful clinical development, regulatory approval, and market acceptance of its therapeutic products.

Soleno Therapeutics Financial Statement Overview

Summary

Soleno Therapeutics is in its developmental phase, with no revenue generation and substantial net losses. The company shows a strong equity base with minimal debt, but its financial health is heavily reliant on external financing due to the lack of operational cash inflow. This represents a high-risk profile typical for early-stage biotech firms.

Income Statement

Soleno Therapeutics has reported zero revenue consistently, indicating the company is yet in developmental stages with no commercialized products. The net losses have been substantial over the years, with no gross or net profit margins to evaluate, reflecting ongoing operational expenses without revenue generation. This indicates a high-risk profile typical for early-stage biotech firms.

Balance Sheet

The balance sheet shows a relatively high stockholders' equity compared to total assets, indicating a solid equity base. However, the total debt is minimal, which is positive, but the lack of revenue raises concerns about sustainability. The equity ratio is strong, but the absence of revenue impacts overall financial health adversely.

Cash Flow

Operating cash flow is negative, which is expected for a company in the biotechnology sector still in R&D phases. Free cash flow trends are also negative, highlighting ongoing cash burn without revenue inflow. Financing activities have supplemented cash flows significantly, hinting at reliance on external funding to support operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-494.00K	0.00	-1.96M	-2.21M	-2.21M	-2.19M
EBITDA	-156.82M	-173.63M	-37.03M	-21.86M	-28.70M	-30.00M
Net Income	-198.22M	-175.85M	-38.99M	-20.32M	-29.56M	-15.38M
Balance Sheet
Total Assets	318.09M	330.97M	180.69M	26.50M	35.55M	64.98M
Cash, Cash Equivalents and Short-Term Investments	289.95M	291.44M	169.68M	14.60M	21.30M	49.22M
Total Debt	52.79M	52.83M	403.00K	155.00K	457.00K	139.00K
Total Liabilities	85.83M	85.86M	23.18M	16.15M	17.76M	19.43M
Stockholders Equity	232.26M	245.11M	157.51M	10.35M	17.79M	45.55M
Cash Flow
Free Cash Flow	-89.53M	-69.31M	-24.94M	-20.79M	-27.79M	-25.23M
Operating Cash Flow	-89.32M	-69.10M	-24.94M	-20.78M	-27.77M	-25.22M
Investing Cash Flow	-87.50M	-225.68M	0.00	-13.00K	-22.00K	-7.00K
Financing Cash Flow	215.31M	213.03M	180.02M	14.09M	-128.00K	53.72M

Soleno Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 78.71
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLNO, the sentiment is Neutral. The current price of 78.71 is below the 20-day moving average (MA) of 84.77, below the 50-day MA of 82.19, and above the 200-day MA of 62.49, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 37.05 is Neutral, neither overbought nor oversold. The STOCH value of 7.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SLNO.

Soleno Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADMA	79 Outperform	$4.43B	19.72	71.23%	―	43.58%	491.01%
KRYS	71 Outperform	$3.98B	27.67	15.61%	―	247.53%	118.34%
Sector *	65 Neutral	¥342.43B	8.69	-3.93%	2.47%	11.18%	-19.47%
MRUS	61 Neutral	$5.02B	―	-48.54%	―	42.77%	-51.27%
AKRO	60 Neutral	$3.95B	―	-27.92%	―	―	-31.37%
MTSR	40 Underperform	$3.50B	―		―	―	―
SLNO	37 Underperform	$4.31B	―	-69.53%	―	―	-43.20%

Soleno Therapeutics Corporate Events

Soleno Therapeutics Enhances Executive Compensation Structure

On January 21, 2025, Soleno Therapeutics’ Board of Directors approved increases to the base salaries for fiscal year 2025 and the payment of cash bonuses for fiscal year 2024 for its named executive officers, along with certain equity awards. This decision reflects the company’s ongoing efforts to enhance its executive compensation structure, which may impact its strategic operations and stakeholder expectations.