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On Wednesday, Stifel analysts reiterated their Buy rating on Soleno Therapeutics Inc. (NASDAQ:SLNO) shares, maintaining a price target of $74.00. Currently trading at $45.94, InvestingPro analysis indicates the stock is overvalued at current levels. The firm’s optimism is rooted in the potential approval of Soleno’s drug, DCCR, for Prader-Willi syndrome (PWS), a rare genetic disorder characterized by insatiable hunger, among other symptoms. With a market capitalization of $2.1 billion and strong analyst consensus, SLNO has garnered significant attention from Wall Street, with price targets ranging from $67 to $93.
The analysts’ confidence follows a discussion with key opinion leaders (KOLs) in the field, Drs. Jennifer Abuzzahab and Elizabeth Estrada, who shared insights into the rare obesity space, including the regulatory and commercial prospects of DCCR. According to the analysts, the conversation underscored a significant unmet need in PWS treatment, particularly concerning hyperphagia, the condition’s hallmark trait of unrelenting appetite. InvestingPro data reveals the company maintains a healthy financial position with a current ratio of 15.68, indicating strong ability to meet short-term obligations.
DCCR’s clinical data was highlighted as establishing a credible effect, with a risk/benefit profile that, given the substantial unmet need, should support its approval. The excitement and awareness among patients and physicians for the drug were also noted as positive indicators.
The KOLs believe that, should DCCR be approved by the upcoming PDUFA date on March 27th, it would be offered to virtually all of their PWS patients. This sentiment echoes Stifel’s recent coverage report, which suggested that DCCR’s approval could unlock a blockbuster opportunity, potentially leading to significant upside for Soleno Therapeutics’ stock. For deeper insights into SLNO’s potential, InvestingPro subscribers can access exclusive financial health scores, detailed valuation metrics, and comprehensive Pro Research Reports that transform complex Wall Street data into actionable intelligence.
The report by Stifel comes ahead of a critical milestone for Soleno Therapeutics, as the PDUFA date approaches. The company and its investors are likely to be closely monitoring the FDA’s decision, which could have a substantial impact on the company’s future trajectory.
In other recent news, Soleno Therapeutics has been the focus of several noteworthy developments. Stifel analysts resumed coverage of the company with a Buy rating and set a price target of $74.00, expressing optimism about Soleno’s product DCCR, which is under FDA review for treating Prader-Willi Syndrome. The analysts estimated an 80% probability of success for the drug’s approval, highlighting its potential to become a blockbuster due to the significant unmet need in this rare disease. Cantor Fitzgerald maintained its Overweight rating and a $67.00 price target, adjusting its financial model to reflect anticipated changes in operating expenses and market expectations ahead of a potential new drug launch.
Additionally, Soleno Therapeutics announced changes to its executive compensation program, increasing base salaries and awarding bonuses and equity to its top executives. CEO Anish Bhatnagar will receive a base salary of $739,000 and a cash bonus of $403,200 for the fiscal year 2024, along with stock options and restricted stock units. Stifel also identified Soleno as one of its top biotech picks for 2025, citing significant upcoming catalysts that could drive stock values higher. The firm noted that an FDA decision on DCCR, expected by March 27, 2025, could mark the beginning of a period of revenue growth and profitability for the company. These developments suggest that Soleno Therapeutics is poised for potential growth and strategic interest in the coming year.
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