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Investing.com - TD Cowen initiated coverage on Soleno Therapeutics Inc. (NASDAQ:SLNO) with a buy rating and a price target of $110.00 on Monday. The company, currently valued at $4.03 billion, has delivered impressive returns with a 94% gain over the past year.
The research firm highlighted Vykat XR as the first-approved treatment for hyperphagia in Prader-Willi syndrome (PWS), a rare genetic disorder. TD Cowen noted that the drug "bucked the trend of clinical shortcomings in PWS" by securing regulatory approval. According to InvestingPro data, analysts expect the company to become profitable this year.
The firm expressed confidence in Soleno’s management team, stating they "appear prepared to execute on a strong launch with a high price tag and sizable population to itself." The analysis suggests the company has positioned itself well for commercial success.
TD Cowen’s $110 price target is based on discounted cash flow (DCF) analysis, reflecting substantial growth potential for the biopharmaceutical company. The target represents significant upside from current trading levels.
The firm cited optimism that "the PWS community’s urgency will fuel significant uptake" of Vykat XR, suggesting strong demand potential among patients and caregivers dealing with this rare genetic syndrome. The company maintains a healthy financial position with a current ratio of 19.64, indicating strong liquidity to support its commercial launch.
In other recent news, Soleno Therapeutics has reported positive results for its VYKAT XR treatment for Prader-Willi syndrome (PWS), with patients showing significant improvements in symptoms after resuming treatment. The company has also announced that its Marketing Authorization Application (MAA) for Diazoxide Choline Prolonged-Release Tablets, branded as VYKAT XR, has been validated by the European Medicines Agency (EMA). This validation is a significant step toward making the treatment available in the European Union, where Soleno has already secured Orphan Drug Designation. Piper Sandler has reiterated an Overweight rating for Soleno, highlighting the potential of VYKAT XR as the first approved treatment specifically targeting PWS. Stifel has maintained a Buy rating, citing encouraging initial launch dynamics and strong demand for VYKAT XR. Additionally, Cantor Fitzgerald has reaffirmed its Overweight rating, emphasizing the treatment’s long-term potential and efficacy. These developments underscore Soleno’s commitment to addressing the needs of the PWS community and expanding its market presence.
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