REDWOOD CITY, Calif. - Soleno Therapeutics, Inc. (NASDAQ:SLNO) announced today its intention to conduct an underwritten public offering of its common stock. The clinical-stage biopharmaceutical company, which specializes in developing treatments for rare diseases, also plans to give underwriters a 30-day option to buy additional shares amounting to 15% of the total sold in the offering.
The completion and terms of the offering are subject to market conditions, and there is no certainty regarding the completion timeline or the offering's size. Piper Sandler and Guggenheim Securities are the joint book-running managers for the offering.
Proceeds from the sale are earmarked for advancing the company's primary research project, DCCR tablets, aimed at treating Prader-Willi Syndrome (PWS), among other corporate purposes. These may include working capital, capital expenditures, other clinical trials, and potentially acquiring complementary products, technologies, or businesses, although there are no specific agreements or commitments at present.
Soleno's offering is pursuant to a registration statement previously filed and declared effective by the Securities and Exchange Commission (SEC) on January 2, 2024. Interested parties can obtain copies of the preliminary prospectus supplement and accompanying prospectus from Piper Sandler & Co. and Guggenheim Securities once they are available.
Soleno's lead candidate, DCCR (diazoxide choline) extended-release tablets, has recently completed its Phase 3 development program, and the company is preparing for a New Drug Application (NDA) submission.
The forward-looking statements in this announcement are based on the company's current expectations and are subject to risks and uncertainties that could cause actual events or results to differ materially. These include market conditions, the satisfaction of customary closing conditions for public offerings, and other risks detailed in Soleno's filings with the SEC.
InvestingPro Insights
As Soleno Therapeutics, Inc. (NASDAQ:SLNO) navigates through its public offering, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Soleno Therapeutics holds a market capitalization of approximately $1.64 billion. Notably, the stock has experienced a significant return over the last year, with a 1204.25% increase in its price total return. This could indicate strong investor confidence or a response to positive developments within the company.
Despite the strong market performance, Soleno Therapeutics is currently trading at a high Price / Book multiple of 10.37 as of the last twelve months ending Q4 2023, which may suggest that the stock is priced optimistically in relation to its book value. Moreover, the company has faced challenges with profitability, as evidenced by an operating income of -$38.67 million and a negative P/E ratio of -20.58, reflecting investor concerns about current earnings relative to the share price.
InvestingPro Tips highlight that Soleno Therapeutics holds more cash than debt on its balance sheet and analysts predict the company will be profitable this year. These insights could be particularly relevant for investors considering participation in the public offering, as they suggest a potentially favorable financial position going forward. For a deeper analysis and more InvestingPro Tips, interested investors can visit https://www.investing.com/pro/SLNO. There are 12 additional tips available to help guide investment decisions.
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