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Shares of Soleno Therapeutics (SLNO) jumped more than 20% in overnight trading heading into Monday after the Financial Times reported that Neurocrine Biosciences is in advanced talks to acquire the biopharmaceutical company in a deal that could value it at over $2.5 billion.
Neurocrine's offer is said to value Soleno shares in the low- to mid-$50 range, according to the FT, which cited people familiar with the discussions. The stock was trading at roughly $47.50 heading into Monday, giving it a market cap of about $2.04 billion at its last close.
Soleno, which develops treatments for the extreme hunger associated with Prader-Willi syndrome, has been on acquirers' radars since the successful commercial launch of Vykat XR, its once-daily hyperphagia pill. Between its launch in March last year and the end of 2025, roughly 1,250 patients had started on the drug, generating $190 million in sales, the FT reported.
Soleno's commercial momentum was on display in its most recent quarterly results. In late February, the company reported fourth-quarter revenue of $91.73 million, ahead of the consensus estimate of $88.55 million. CEO Anish Bhatnagar called the company's first year as a commercial organization "an outstanding success," noting that Soleno had received patient start forms representing over 12% of the U.S. Vykat XR addressable market in just nine months.
Last month, H.C. Wainwright trimmed its price target on Soleno to $100 from $120 following the quarterly report, while maintaining a 'Buy' rating, according to a summary on The Fly. The firm maintained a positive view of the company's commercial outlook and adjusted its peak U.S. market-share estimate for Vykat to 20% of the total Prader-Willi syndrome market.
Retail sentiment on SLNO has turned 'extremely Bullish' from ‘bearish’ six months ago, while followers on Stocktwits grew by nearly 3% in the past 12 months.
Traders on Stocktwits are largely bullish on the deal prospects. "I want more. Minimum $75," one user posted following the report.
Another questioned whether the buzz of a $50-per-share valuation, implying a roughly 5% premium to the last close, would be enough to get a deal done.
Soleno shares have fallen roughly 5% since the company's IPO in April 2014. Neurocrine (NBIX), meanwhile, is down over 7% year-to-date and edged slightly lower in overnight trading heading into Monday.
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