Soleno Therapeutics, Inc. (Soleno) is making a significant move in the financial realm with its proposed $200 million public offering of common stock. The company, listed as (NASDAQ:SLNO), aims to offer and sell $200 million of shares of its common stock, with an additional option for underwriters to purchase up to an extra $30 million of shares.
The intended use of the net proceeds from this offering is substantial. Soleno plans to fund the commercialization of VYKAT XR, the first approved therapy to address hyperphagia in individuals with Prader-Willi Syndrome. This therapy was greenlit by the U.S. Food and Drug Administration on March 26, 2025. Moreover, the company also intends to allocate the proceeds towards regulatory and market development activities in the European Union, as well as further research and development efforts and general corporate purposes such as working capital, capital expenditures, other clinical trials, corporate expenses, and potential acquisitions of complementary products, technologies, or businesses.
This offering will be made pursuant to a registration statement on Form S-3ASR (file no. 333-276344) that was automatically declared effective by the Securities and Exchange Commission (SEC) on January 2, 2024. The offering will be conducted by means of a written prospectus and a prospectus supplement forming a part of the registration statement. It's important to note that the final terms of the public offering will be disclosed in a final prospectus supplement and accompanying prospectus relating to the offering that will be filed with the SEC.
Soleno's decision to pursue this public offering comes at a time when the company is focused on the development and commercialization of novel therapeutics for the treatment of rare diseases. The company's first commercial product, VYKAT XR (diazoxide choline) extended-release tablets, is a once-daily oral treatment for hyperphagia in adults and children 4 years of age and older with Prader-Willi Syndrome.
Goldman Sachs & Co. LLC and Guggenheim Securities are acting as the joint book-running managers for this proposed public offering. Soleno's ability to secure this significant amount of capital through a public offering reflects its growth trajectory and the potential it sees in its product portfolio and development pipeline. The market has reacted to these announcements by moving the company's shares 2.98% to a price of $82.71. Check out the company's full 8-K submission here.
