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On Wednesday, Oppenheimer analysts increased the price target for Soleno Therapeutics Inc. (NASDAQ:SLNO) shares to $105, up from the previous target of $73, while maintaining an Outperform rating. Currently trading at $48.97 with a market capitalization of $2.25 billion, the stock has shown resilience with a 14% gain over the past year. The adjustment follows the recent FDA approval of Vykat XR for the treatment of hyperphagia in Prader-Willi syndrome, which was announced yesterday. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $70 to $123.
The analysts have expressed a positive outlook based on the FDA’s favorable labeling and the drug’s pricing, which exceeded expectations. According to their assessment, the peak sales potential in the United States could reach $2 billion, an increase from their prior estimate of $1.5 billion. This upward revision is attributed to what they anticipate will be strong demand within the community and robust support from healthcare payors. InvestingPro analysis reveals that while the company isn’t currently profitable, analysts expect positive earnings this year, with an EPS forecast of $7.31 for FY2025.
Soleno Therapeutics’ Vykat XR is considered a transformative therapy, and the company is expected to make the commercial product available promptly, as it finalizes the expansion of its sales force over the next month. The analysts’ optimism is rooted in the drug’s potential to significantly impact the market and the company’s readiness for immediate distribution.
The FDA’s approval is a significant milestone for Soleno Therapeutics and represents a major advancement in the treatment options available for individuals with Prader-Willi syndrome, a genetic disorder that causes insatiable hunger, known as hyperphagia, among other symptoms.
The company’s stock price is likely to react to this positive development as the market responds to the increased sales forecast and the strategic steps Soleno Therapeutics is taking to ensure the drug reaches patients without delay. The raised price target reflects the analysts’ confidence in the company’s growth trajectory following the FDA’s approval of Vykat XR.
In other recent news, Soleno Therapeutics has received FDA approval for its Vykat XR tablets, designed to treat hyperphagia associated with Prader-Willi syndrome. This approval represents a significant milestone for the company, as Vykat XR is the first therapy specifically targeting this condition. Following the FDA’s decision, analysts at Baird upgraded their price target for Soleno to $102, reflecting increased confidence in the company’s market potential. Cantor Fitzgerald also raised its price target to $123, maintaining an Overweight rating, citing the drug’s clean label and supportive pricing. Stifel reiterated its Buy rating with a $74 target, emphasizing the drug’s strong market potential and its favorable risk/benefit profile. The approval has been recognized as a critical catalyst by analysts, who anticipate a robust commercial launch. Soleno has also introduced Soleno One™, a patient support program to facilitate access to Vykat XR. The drug is expected to be available in the U.S. by April 2025.
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