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Tuesday, Piper Sandler reiterated an Overweight rating and a $93.00 price target on Soleno Therapeutics Inc. (NASDAQ:SLNO) shares, representing potential upside from the current $71.45 price level. According to InvestingPro data, the stock appears overvalued at current levels, despite analyst targets ranging from $81 to $123. This affirmation came after the approval of VYKAT XR for treating hyperphagia in patients with Prader-Willi Syndrome (PWS) aged four years and older.
A key opinion leader (KOL) in psychiatry, who was part of a call hosted by Piper Sandler, expressed that the approval of VYKAT XR has garnered international attention. This enthusiasm has contributed to SLNO’s remarkable 42.76% gain over the past week, according to InvestingPro data. Advocacy groups for PWS have widely disseminated the information, which has led to an influx of inquiries from patients and caregivers seeking access to the treatment.
The psychiatrist, who currently manages the care of approximately 100 PWS patients, anticipates that over 75% of them could be eligible for VYKAT XR. He aims to initiate treatment for around 60 patients within the next three months. The strong response from the PWS community indicates a robust demand for the newly approved drug, which could support analysts’ expectations of profitability this year for the $3.28 billion market cap company.
Additionally, the psychiatrist underscored the favorable labeling of VYKAT XR, noting that glucose monitoring is a routine procedure among psychiatrists and endocrinologists. This established practice is expected to facilitate the adoption of VYKAT XR by healthcare professionals without any significant barriers.
Piper Sandler’s outlook on Soleno Therapeutics remains positive, with a high probability of success assigned to the launch of VYKAT XR. The firm’s confidence is bolstered by the significant interest and proactive engagement from physicians, patients, and caregivers alike.
In other recent news, Soleno Therapeutics has achieved a significant milestone with the FDA approval of VYKAT XR (diazoxide choline) extended-release tablets for the treatment of hyperphagia associated with Prader-Willi Syndrome (PWS) in both adults and children aged four and above. This approval is expected to positively impact Soleno’s revenue and growth prospects, with the drug anticipated to be available in the U.S. market by April 2025. Following this development, several analysts have adjusted their price targets for Soleno’s stock. H.C. Wainwright increased its target from $70 to $100, while Stifel raised it from $74 to $108, both maintaining Buy ratings. Guggenheim also increased its target to $81, citing optimistic revenue projections for VYKAT XR. Piper Sandler maintained a $93 target with an Overweight rating, highlighting the drug’s minimal warnings and favorable pricing strategy.
Stifel analysts expressed optimism regarding the drug’s market potential, projecting $2 billion in revenue, which they consider potentially conservative. Guggenheim’s forecast for VYKAT XR suggests it could generate $1.6 billion in revenue by 2030 in the U.S. market alone. The favorable risk/benefit profile and pricing strategy of VYKAT XR are expected to facilitate its market adoption, with Soleno planning to deploy a sales team targeting key specialists. These developments underscore the anticipated commercial success of VYKAT XR and its potential impact on Soleno Therapeutics’ financial growth.
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