On Thursday, Piper Sandler reiterated its Overweight rating on Soleno Therapeutics Inc. (NASDAQ:SLNO), maintaining a $93.00 price target for the company's stock. The endorsement comes as the biopharmaceutical company advances towards its New Drug Application (NDA) submission for DCCR, a drug intended to treat hyperphagia in patients with Prader-Willi Syndrome (PWS), planned for mid-2024.
The firm's positive outlook is based on recent discussions with a UK-based pediatric endocrinologist experienced in treating PWS, a genetic disorder characterized by an insatiable appetite among other symptoms. The specialist expressed a favorable view of DCCR, citing its consistent efficacy across various parameters, long-term durability, safety profile, and the relevance of the study population to real-world PWS patients.
According to the specialist, the current data on DCCR suggests that it could be widely adopted for the treatment of hyperphagia in PWS, without the need for a hyperphagia questionnaire-clinical trials (HQ-CT) cutoff. The endocrinologist indicated a willingness to use DCCR for approximately 75% of her PWS patients who experience hyperphagia, highlighting the significant unmet medical needs in this group.
The analyst from Piper Sandler emphasized the potential for substantial upside in Soleno Therapeutics' stock value leading up to the NDA submission and anticipated regulatory milestones. The firm's stance reflects confidence in the drug's approval and its subsequent impact on the treatment landscape for PWS.
Soleno Therapeutics is focused on developing and commercializing novel therapeutics for the treatment of rare diseases. The company's lead candidate, DCCR, is aimed at addressing the unmet medical needs of PWS patients, a population estimated to be between 9,000 diagnosed and 10,000 to 20,000 total prevalence in the United States.
InvestingPro Insights
Soleno Therapeutics Inc. (NASDAQ:SLNO) is navigating a pivotal phase as it progresses towards its NDA submission for DCCR. The recent Overweight rating by Piper Sandler with a significant price target suggests a strong conviction in the company's prospects.
To provide a deeper financial perspective, let's consider some key metrics from InvestingPro. The company holds a market capitalization of $1.56 billion, reflecting investor confidence despite its negative P/E ratio of -19.31, which indicates that the company has not been profitable in the recent past.
InvestingPro Tips highlight that Soleno Therapeutics holds more cash than debt, suggesting a solid financial footing (Tip #0). Moreover, analysts are optimistic about the company's future, predicting that it will be profitable this year (Tip #7). This aligns with the expected growth in net income and could be a pivotal factor for investors considering the stock's potential.
Despite these positive signs, the company's high Price / Book multiple of 10.89 and a significant one-year price return of 693.89% might raise questions about valuation and sustainability of the current stock price trajectory (Tip #6).
For those interested in a more comprehensive analysis, InvestingPro offers additional insights on Soleno Therapeutics. With the use of coupon code PRONEWS24, readers can access these insights and benefit from an extra 10% off a yearly or biyearly Pro and Pro+ subscription. This includes an examination of the company's liquid assets, which exceed its short-term obligations, providing a cushion for operational exigencies (Tip #4). For further details and to explore a full range of InvestingPro Tips, please visit: https://www.investing.com/pro/SLNO.
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