Soleno Therapeutics stock experienced a significant decline on Wednesday, partially offsetting its remarkable gains from the previous trading session.
On Tuesday, the biotechnology company witnessed an astronomical surge of 505%, with its shares reaching $26.80, marking the largest percentage increase and the highest closing price since March 2021, according to Dow Jones Market Data.
However, it is common knowledge that smaller biopharmaceutical stocks are highly volatile. As a result, Soleno stock dropped by 15% to $22.90 during recent trading on Wednesday. Nevertheless, the shares have still achieved an impressive overall gain of approximately 1,056% this year, largely attributed to Tuesday’s surge. With a market value of $268 million, the company has been making notable strides in the industry.
Soleno (ticker: SLNO) recently announced positive results for its diazoxide choline extended-release (DCCR) tablets, which aim to treat the rare genetic disorder known as Prader-Willi Syndrome.
Prader-Willi Syndrome primarily affects metabolism and is characterized by hyperphagia—a relentless sensation of constant hunger and an irresistible urge to consume food. Soleno revealed that its DCCR treatment demonstrated promising outcomes in addressing hyperphagia during a recent clinical development program, igniting a remarkable rally in its stock.
Anish Bhatnagar, the Chief Executive of Soleno, expressed optimism, stating, “These results will support our planned submission of a New Drug Application to the U.S. Food and Drug Administration mid-year of next year.”
Yale Jen, an analyst from Laidlaw & Company, increased the price target for Soleno’s stock to $39 from $10 in a research note released on Tuesday. Maintaining his Buy rating, Jen stated, “Should DCCR be approved, which we believe is highly probable, the commercial potential could be substantial given the lack of competitive therapies available. It is especially encouraging since the positive outcome came from a relatively small study patient size (n=77), which showcased the potency of DCCR treatment.”
In summary, Soleno Therapeutics experienced a remarkable surge following positive results for its DCCR tablets, offering hope for individuals suffering from Prader-Willi Syndrome. Despite a recent decline, the company remains an influential player in the biotechnology sector, with its stock showcasing strong growth potential.
