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On Thursday, Stifel analysts reiterated their Buy rating on Soleno Therapeutics Inc. (NASDAQ:SLNO) with a steady price target of $74.00. According to InvestingPro data, analysts’ targets range from $67 to $93, with a strong consensus rating of 1.38, indicating broad market optimism. The stock, currently trading at $48.97, appears overvalued based on InvestingPro’s Fair Value analysis. The endorsement follows the recent FDA approval of VYKAT XR (DCCR) for the treatment of Prader-Willi Syndrome (PWS), a genetic disorder characterized by an insatiable appetite, among other symptoms.
The analysts at Stifel expressed their optimistic outlook based on the drug’s strong potential in the market. They noted that the approval is a significant victory for Soleno Therapeutics, highlighting the clean label and the higher-than-expected pricing, which averages around $466,000. According to Stifel, VYKAT XR is well-positioned for a robust launch into a market with significant unmet needs, a well-diagnosed and concentrated patient population, favorable risk/benefit profile, and high physician and patient awareness. The company, now valued at $2.25 billion, maintains strong liquidity with a current ratio of 15.68.
Stifel’s analysis suggests that VYKAT XR has a distinct advantage over recent rare disease drug launches, which may have started strong but are now seeing a plateau in their growth. They believe that VYKAT XR’s trajectory will differ due to its unique position in the market.
The firm anticipates that Soleno Therapeutics’ stock will experience a meaningful increase in value following this news and continue to rise over time. Stifel’s confidence is rooted in their belief that the drug’s launch is one investors will want to be part of, especially in a challenging market. Furthermore, they speculate that merger and acquisition activity could present an additional upside for the stock. With a beta of -1.69, the stock typically moves counter to market trends. For deeper insights into SLNO’s valuation and growth prospects, including exclusive ProTips and comprehensive financial analysis, visit InvestingPro.
In other recent news, Soleno Therapeutics announced the FDA approval of VYKAT XR for treating hyperphagia in individuals with Prader-Willi syndrome. This medication is the first approved therapy specifically targeting this condition, with availability expected in the U.S. by April 2025. Following this regulatory milestone, Baird analyst Brian Skorney raised the price target for Soleno to $102, maintaining an Outperform rating. Skorney emphasized the drug’s clean label and favorable interactions with payers, which may contribute to its market success. Meanwhile, Stifel analysts reiterated their Buy rating with a $74 price target, expressing optimism about the drug’s potential and the upcoming Prescription Drug User Fee Act (PDUFA) date. Cantor Fitzgerald maintained its Overweight rating and $67 price target, adjusting its financial model to reflect anticipated changes in operating expenses and market expectations. These developments suggest a promising outlook for Soleno Therapeutics as it prepares for the commercial launch of VYKAT XR.
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