Drugmaker for rare disease soars 1,200% in last year
Soleno Therapeutics, which develops drugs to treat rare genetic diseases, has seen its stock surge over 1,200% in the last year. In August, one of its drugs received Priority Review designation from the U.S. Food and Drug Administration (FDA). The medication is a pill designed to treat Prader-Willi syndrome, a congenital condition marked by obesity, short stature, reduced gonadal function, and intellectual disabilities.
Details
According to MarketWatch, Soleno stock has gained 1,203% over the last 12 months. It closed on Wednesday, September 18, at $53.60 per share, with intraday highs at $54.50. In pre-market trading on Thursday, September 19, it added another 2.7%, reaching $55, the highest level since June 2020.
MarketWatch reports that eight analysts track the company, and all recommend buying. The average target price is $70.25 per share, indicating 31% upside from the closing price on September 18.
About the company
Soleno Therapeutics develops treatments for rare genetic diseases. One of its main drugs, based on diazoxide choline, is intended to treat Prader-Willi syndrome. According to data from the PWS Association cited by Zacks Investment Research, this disorder affects approximately one in every 15,000 newborns. The most common symptom is an abnormally increased appetite, which often leads to overeating and, over time, diabetes, obesity, and cardiovascular disease. Other symptoms include cognitive impairment and episodes of anger.
In August, the Soleno treatment for Prader-Willi syndrome received Priority Review designation from the FDA, meaning the application will be reviewed within four months, Zacks notes, with a decision expected in December. The usual review period ranges from six to 10 months.
Currently, there are no approved treatments for hyperphagia (excessive eating), cognitive issues, or the behavioral aspects of Prader-Willi syndrome, Zacks points out. Furthermore, Soleno highlights that the active ingredient in its pill could potentially be used to treat other genetic disorders leading to obesity.
