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Soleno Therapeutics Inc (SLNO)
NASDAQ:SLNO
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Soleno Therapeutics
(NASDAQ:SLNO)
Rating:37Underperform
Price Target:―
Positive Factors
Earnings
The company delivered $32.7M in total net product sales, blowing past original forecast of only $1.7M.
Market Launch
VYKAT XR U.S. roll-out is ahead of schedule, raising the price target.
Product Approval
Vykat XR bucked the trend of clinical shortcomings in PWS by becoming the first-approved treatment for hyperphagia in this devastating genetic syndrome.
Negative Factors
Market Competition
The absence of viable competitors in the foreseeable future presents an opportunity for Soleno, but also a challenge to maintain market dominance without competitive pressure.
Soleno Therapeutics (SLNO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.70B
Dividend YieldN/A
Average Volume (3M)1.47M
Price to Earnings (P/E)―
Beta (1Y)-0.70
Revenue GrowthN/A
EPS Growth-70.28%
CountryUS
Employees115
SectorHealthcare
Sector Strength47
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.09
Shares Outstanding53,145,008
10 Day Avg. Volume2,142,911
30 Day Avg. Volume1,473,957
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue122.34
Enterprise Value/Gross Profit125.01
Enterprise Value/Ebitda-22.34
Forecast
1Y Price Target
$119.56Price Target Upside76.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Soleno Therapeutics Business Overview & Revenue Model
Company DescriptionSoleno 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 MoneySoleno 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 Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflects a highly positive sentiment with the successful launch and strong initial uptake of Vykat XR. The company's robust financial position and broad payer coverage further underscore the positive outlook. However, there are some uncertainties regarding future revenue streams and the upcoming challenges in the European market.Q2-2025 Updates
Positive Updates
Successful Launch of Vykat XR
The launch of Vykat XR for Prader-Willi Syndrome (PWS) has been well received, with strong initial demand and steady growth in patient starts and prescribers. Since the launch, 646 patient start forms have been received, and 295 unique prescribers have been identified.
Significant Revenue Generation
Soleno Therapeutics reported total net revenue of $32.7 million for the second quarter, reflecting strong demand for Vykat XR. This marks the first revenue generation for the drug following FDA approval in March.
Strong Financial Position
The company raised an additional $230 million through an offering, bringing the total pro forma cash balance to over $500 million, ensuring sufficient capital for U.S. launch and potential EU expansion.
Broad Payer Coverage Achieved
Vykat XR has achieved approximately 33% coverage among insured lives, covering over 100 million lives in the U.S. across commercial, Medicaid, and Medicare channels.
Positive Market Reception
The response from patients, physicians, and payers has been exceptionally encouraging, indicating strong market acceptance and recognition of the therapeutic need for Vykat XR.
Negative Updates
Initial Revenue Uncertainty
While initial revenues exceeded expectations, there is an acknowledgment that future revenues may not continue linearly, suggesting potential revenue normalization in coming quarters.
Potential Challenges in Europe
The company is preparing for potential approval and commercialization in the EU, but details regarding the size and cost of the commercial team required for this expansion are still being determined.
Ongoing Investment Requirements
Selling, general, and administrative expenses increased significantly to $28.2 million due to investments in personnel and programs supporting the Vykat XR launch, suggesting continued high expenditure in the near term.
Company Guidance
During Soleno Therapeutics' second-quarter 2025 earnings call, the company highlighted several key metrics reflecting their commercial success. The launch of Vykat XR, the first FDA-approved treatment for hyperphagia in individuals with Prader-Willi Syndrome (PWS), generated $32.7 million in net revenue within the quarter. The company reported 646 patient start forms and 295 unique prescribers from launch through June 30. Approximately 33% of all insured lives in the United States are covered, equating to over 100 million lives. Soleno's financial results also showed a net loss of $4.7 million, with $293.8 million in cash and equivalents at the end of the quarter. The company is focused on expanding Vykat XR's reach in the EU, having submitted a marketing authorization application to the EMA.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.10
Very Negative
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.35
Negative
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.20
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.66M | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | 31.96M | 0.00 | -1.96M | -2.21M | -2.21M | -2.19M |
| EBITDA | -178.82M | -173.63M | -37.03M | -21.86M | -28.70M | -30.00M |
| Net Income | -181.08M | -175.85M | -38.99M | -20.32M | -29.56M | -15.38M |
Balance Sheet | ||||||
| Total Assets | 332.31M | 330.97M | 180.69M | 26.50M | 35.55M | 64.98M |
| Cash, Cash Equivalents and Short-Term Investments | 286.84M | 291.44M | 169.68M | 14.60M | 21.30M | 49.22M |
| Total Debt | 52.77M | 52.83M | 403.00K | 155.00K | 457.00K | 139.00K |
| Total Liabilities | 92.17M | 85.86M | 23.18M | 16.15M | 17.76M | 19.43M |
| Stockholders Equity | 240.14M | 245.11M | 157.51M | 10.35M | 17.79M | 45.55M |
Cash Flow | ||||||
| Free Cash Flow | -84.49M | -69.31M | -24.94M | -20.79M | -27.79M | -25.23M |
| Operating Cash Flow | -84.28M | -69.10M | -24.94M | -20.78M | -27.77M | -25.22M |
| Investing Cash Flow | 25.50M | -225.68M | 0.00 | -13.00K | -22.00K | -7.00K |
| Financing Cash Flow | 78.25M | 213.03M | 180.02M | 14.09M | -128.00K | 53.72M |
Soleno Therapeutics Technical Analysis
Negative
67.68
Price Trends
81.14
Negative
77.44
Negative
63.78
Positive
Market Momentum
-4.28
Positive
35.03
Neutral
31.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLNO, the sentiment is Negative. The current price of 67.68 is below the 20-day moving average (MA) of 76.29, below the 50-day MA of 81.14, and above the 200-day MA of 63.78, indicating a neutral trend. The MACD of -4.28 indicates Positive momentum. The RSI at 35.03 is Neutral, neither overbought nor oversold. The STOCH value of 31.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLNO.
Soleno Therapeutics Risk Analysis
Soleno Therapeutics disclosed 63 risk factors in its most recent earnings report. Soleno Therapeutics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Soleno Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.25B | 29.88 | 15.61% | ― | 116.09% | 35.29% | |
74 Outperform | $4.08B | 20.13 | 71.23% | ― | 43.58% | 491.01% | |
62 Neutral | $5.06B | ― | -48.54% | ― | 59.77% | -92.92% | |
60 Neutral | $3.85B | ― | -31.14% | ― | ― | -11.39% | |
51 Neutral | $7.83B | -0.18 | -40.10% | 2.29% | 21.46% | -2.03% | |
40 Underperform | $3.49B | ― | ― | ― | ― | ||
37 Underperform | $3.70B | ― | -69.53% | ― | ― | -70.28% |
* Healthcare Sector Average
Performance Comparison
SLNO
Soleno Therapeutics
67.68
21.12
45.36%
ADMA
ADMA Biologics
17.25
0.03
0.17%
MRUS
Merus
67.28
16.80
33.28%
KRYS
Krystal Biotech
147.64
-47.58
-24.37%
AKRO
Akero Therapeutics
48.19
21.30
79.21%
MTSR
Metsera, Inc.
35.02
7.22
25.97%
Soleno Therapeutics Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Soleno Therapeutics Enhances Executive Compensation Structure
Neutral
Jan 24, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.