Soleno Therapeutics (SLNO) AI Stock Analysis

• Market Cap: $3.30B
• Dividend Yield: N/A
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): ―
• Beta (1Y): -1.06
• Revenue Growth: N/A
• EPS Growth: -43.20%
• Country: US
• Employees: 92
• Sector: Healthcare
• Sector Strength: 71
• Industry: Biotechnology
• EPS (TTM): -4.26
• Shares Outstanding: 45,857,292
• 10 Day Avg. Volume: 2,894,372
• 30 Day Avg. Volume: 1,332,755
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -23.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $95.38
• Price Target Upside: 32.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

Soleno Therapeutics' stock score reflects its developmental stage with no revenue and significant losses. Strong technical momentum provides some optimism, but high financial risk and valuation challenges weigh heavily. Investors should consider the speculative nature, balanced by potential upside in successful product developments.

Positive Factors

FDA Approval

The FDA approval of VYKAT XR for treating hyperphagia in Prader-Willi syndrome is a significant milestone for Soleno Therapeutics.

Financial Position

Soleno reported its 4Q24 and full-year 2024 financials, ending the year with $318.6M in cash, cash equivalents, short- and long-term investments; these resources are expected to be sufficient to fund operations through the launch of DCCR.

Market Launch

The company is prepared for a strong market launch with an active sales team targeting a concentrated group of specialists, which could enhance market penetration.

Negative Factors

Approval Decision Timing

The delay in the approval decision timing is considered likely to be inconsequential in the long-term.

Regulatory Approval Risks

Risks include failure to secure regulatory approval of DCCR in the U.S. for Prader-Willi syndrome, and slower-than-anticipated U.S. market uptake of DCCR due to market access or reimbursement issues.

Soleno Therapeutics Business Overview & Revenue Model

Company Description

Soleno Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutics for the treatment of rare diseases. Its lead candidate is Diazoxide Choline Controlled-Release, a once-daily oral tablet for the treatment of Prader-Willi Syndrome, which is being evaluated in an ongoing Phase III clinical development program. The company was formerly known as Capnia, Inc. and changed its name to Soleno Therapeutics, Inc. in May 2017. Soleno Therapeutics, Inc. was incorporated in 1999 and is based in Redwood City, California.

How the Company Makes Money

Soleno Therapeutics primarily makes money through the development and potential commercialization of its core product, DCCR tablets. The company aims to generate revenue by obtaining regulatory approval for DCCR and subsequently marketing it to healthcare providers and patients. Revenue streams are anticipated to include product sales, licensing agreements, and potential partnerships with pharmaceutical companies for distribution and commercialization. Soleno's financial performance is heavily dependent on the successful clinical development, regulatory approval, and market acceptance of its therapeutic products.

Soleno Therapeutics Financial Statement Overview

Summary

Soleno Therapeutics shows financial characteristics typical of a biotech firm in its developmental stage, with zero revenue, substantial net losses, and dependence on equity financing. A strong equity base is a positive aspect, but the lack of operational cash inflow and significant cash burn pose high risks.

Income Statement

Soleno Therapeutics has reported zero revenue consistently, indicating the company is yet in developmental stages with no commercialized products. The net losses have been substantial over the years, with no gross or net profit margins to evaluate, reflecting ongoing operational expenses without revenue generation. This indicates a high-risk profile typical for early-stage biotech firms.

Balance Sheet

The balance sheet shows a relatively high stockholders' equity compared to total assets, indicating a solid equity base. However, the total debt is minimal, which is positive, but the lack of revenue raises concerns about sustainability. The equity ratio is strong, but the absence of revenue impacts overall financial health adversely.

Cash Flow

Operating cash flow is negative, which is expected for a company in the biotechnology sector still in R&D phases. Free cash flow trends are also negative, highlighting ongoing cash burn without revenue inflow. Financing activities have supplemented cash flows significantly, hinting at reliance on external funding to support operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-1.96M	-2.21M	-2.21M	-2.19M
	EBIT
0.00	-41.38M	-24.40M	-31.53M	-36.29M
	EBITDA
0.00	-37.03M	-21.86M	-28.70M	-30.00M
	Net Income Common Stockholders
-175.85M	-38.99M	-20.32M	-29.56M	-15.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
291.44M	169.68M	14.60M	21.30M	49.22M
	Total Assets
330.97M	180.69M	26.50M	35.55M	64.98M
	Total Debt
3.00M	403.00K	155.00K	457.00K	139.00K
	Net Debt
-84.93M	-169.28M	-14.45M	-20.85M	-49.09M
	Total Liabilities
85.86M	23.18M	16.15M	17.76M	19.43M
	Stockholders Equity
245.11M	157.51M	10.35M	17.79M	45.55M
Cash Flow		Free Cash Flow
-69.31M	-24.94M	-20.79M	-27.79M	-25.23M
	Operating Cash Flow
-69.10M	-24.94M	-20.78M	-27.77M	-25.22M
	Investing Cash Flow
-225.68M	0.00	-13.00K	-22.00K	-7.00K
	Financing Cash Flow
213.03M	180.02M	14.09M	-128.00K	53.72M

Soleno Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 71.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLNO, the sentiment is Positive. The current price of 71.99 is above the 20-day moving average (MA) of 49.65, above the 50-day MA of 48.88, and above the 200-day MA of 48.89, indicating a bullish trend. The MACD of 3.57 indicates Negative momentum. The RSI at 84.44 is Negative, neither overbought nor oversold. The STOCH value of 69.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLNO.

Soleno Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XERS	66 Neutral	$858.99M	―	222.83%	―	23.89%	16.86%
ARQT	56 Neutral	$1.87B	―	-113.76%	―	229.74%	70.23%
Sector *	49 Neutral	$6.85B	0.81	-52.91%	2.50%	19.94%	1.20%
SLNO	45 Neutral	$3.30B	―	-87.35%	―	―	-43.20%
RDHL	41 Neutral	$3.56M	―	1155.92%	―	―	―

Soleno Therapeutics Corporate Events

Soleno Therapeutics Enhances Executive Compensation Structure

On January 21, 2025, Soleno Therapeutics’ Board of Directors approved increases to the base salaries for fiscal year 2025 and the payment of cash bonuses for fiscal year 2024 for its named executive officers, along with certain equity awards. This decision reflects the company’s ongoing efforts to enhance its executive compensation structure, which may impact its strategic operations and stakeholder expectations.