On Monday, Oppenheimer adjusted its price target for Soleno Therapeutics (NASDAQ:SLNO), a biopharmaceutical company, reducing it to $59 from the previous $65. Despite this change, the firm maintained its Outperform rating on the stock. The revision comes as Soleno prepares for the New Drug Application (NDA) submission of its drug candidate, DCCR, to the U.S. Food and Drug Administration (FDA), anticipated by mid-year.
The investment firm's commentary highlighted the sustained high investor interest in DCCR's market potential for treating Prader-Willi syndrome (PWS), a genetic disorder characterized by insatiable hunger, among other symptoms. Recent publications that compare trial data with natural history studies have underscored the long-term benefits of DCCR, particularly its effects on hyperphagia and behaviors related to PWS.
Soleno Therapeutics has previously received FDA Breakthrough Designation for DCCR, which may expedite the development and review process for drugs intended to treat serious conditions. Additionally, the company's recent public equity offering is seen as a positive step in securing its financial footing ahead of the impending regulatory milestones.
The reduction in the price target to $59 reflects updates to Oppenheimer's financial model, taking into account operational expenditure revisions and management's commentary. Despite the lowered price target, the firm reaffirmed its optimistic stance on Soleno Therapeutics' prospects, especially in light of the upcoming NDA submission and the drug's commercial opportunities.
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