Soleno Therapeutics
stock fell sharply Wednesday, reversing a small portion of its meteoric gains from the previous session.
The biotechnology company’s shares had skyrocketed 505% on Tuesday to $26.80, marking the stock’s largest percentage increase on record and its highest close since March 2021, according to Dow Jones Market Data.
But smaller biopharmaceutical stocks are notoriously volatile. Soleno stock dropped 15% to $22.90 in recent trading Wednesday, although the shares are still up about 1,056% so far this year, largely thanks to Tuesday’s surge. The company has a market value of $268 million.
Soleno (ticker: SLNO) on Tuesday had reported positive results for its diazoxide choline extended-release, or DCCR, tablets, which are meant to treat the rare genetic disorder Prader-Willi Syndrome.
Prader-Willi Syndrome affects metabolism, and its hallmark symptom is hyperphagia—a chronic feeling of intense, persistent hunger and an intense drive to consume food. Soleno said Tuesday that DCCR showed promise in addressing hyperphagia in a recent clinical development program, and spurring its stock to take off.
“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,” Chief Executive Anish Bhatnagar said in Tuesday’s release.
In a research note Tuesday, Laidlaw & Company analyst Yale Jen increased his price target on the stock to $39 from $10 and maintained his Buy rating.
“Should DCCR be approved, which we believe is with high probability, the commercial potential could be substantial given the lack of competitive therapies available,” Jen said. “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.”
Write to Angela Palumbo at [email protected]
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