Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
On Tuesday, Piper Sandler reiterated a positive stance on Soleno Therapeutics Inc. (NASDAQ:SLNO) shares, maintaining an Overweight rating and a $145.00 price target. Currently trading at $75.58 with a market capitalization of $3.81 billion, the stock has shown impressive momentum with a 68.14% gain year-to-date. The firm’s analysts expressed continued confidence in the pharmaceutical company following a discussion with management about the progression and expectations for the commercial launch of VYKAT XR, particularly after Soleno’s strong first-quarter earnings for 2025.According to InvestingPro, Soleno shows several promising indicators, with 12+ additional ProTips available to subscribers.
The analysts highlighted the significant market opportunity for VYKAT XR, a treatment for Prader-Willi Syndrome (PWS), citing the high unmet need among approximately 10,000 addressable U.S. patients. With a strong analyst consensus rating of 1.38 (Strong Buy) and projected earnings per share of $6.65 for fiscal year 2025, the market appears optimistic about the company’s prospects. The conversation with Soleno’s management covered a range of topics including the upcoming second-quarter 2025 European Medicines Agency (EMA) filing, the company’s comprehensive commercialization strategy, market access, and efforts in physician and payer outreach.
The report from Piper Sandler delved into the competitive landscape of PWS treatments. It underscored VYKAT XR’s potential to become the standard of care (SoC) for PWS patients experiencing hyperphagia, a condition characterized by insatiable hunger. The analysts were particularly optimistic about the drug’s clean label, favorable pricing, and well-defined market, which they believe could lead to a successful commercial launch.
The endorsement from Piper Sandler comes as Soleno Therapeutics continues to navigate the pharmaceutical market with its flagship product. The firm’s analysts concluded that Soleno remains a key company to watch as VYKAT XR’s market introduction moves forward, signaling promising prospects for the drug’s success and the company’s growth.
In other recent news, Soleno Therapeutics reported a significant financial setback for the first quarter of 2025, with an earnings per share (EPS) of -$0.95, missing the forecasted -$0.89. The company did not generate any revenue during this period, and its cash reserves decreased from $318.6 million to $290 million. Despite these challenges, Soleno achieved a notable milestone with the FDA approval of VICAT XR, a treatment for Prader-Willi Syndrome, which began patient treatments in April. Oppenheimer analysts maintained an Outperform rating for Soleno, with a price target of $105, citing strong initial commercial performance of Vykat XR, which is expected to exceed market expectations. The firm also adjusted its 2025 sales estimate for Vykat XR to $50 million, up from $42 million, while projecting peak U.S. sales to reach $2 billion. Soleno plans to submit an application for European approval of VICAT XR within the current quarter, aligning with its strategy to achieve cash flow breakeven. These developments have positioned Soleno Therapeutics as a key player in the market, drawing investor interest despite the financial hurdles.
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