Soleno Therapeutics ((SLNO)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Soleno Therapeutics’ recent earnings call conveyed a generally positive sentiment, highlighting strong revenue growth and profitability, alongside broad payer coverage for their product, VYKAT XR. However, the optimism was somewhat tempered by challenges such as increased discontinuation rates and the negative impact of a short seller report on market momentum.
Significant Revenue Growth and Profitability
Soleno Therapeutics reported a remarkable financial performance in the third quarter, with total net revenue more than doubling from the previous quarter to reach $66 million. The company also achieved a positive net income of $26 million, marking a significant milestone in its financial journey.
Strong Market Adoption of VYKAT XR
The adoption of VYKAT XR has been robust, with 764 individuals actively treated by the end of the third quarter. This growth is further supported by 397 patient start forms recorded during the same period, indicating a strong market presence and acceptance.
Broad Payer Coverage
Soleno has secured extensive payer coverage, with policies covering approximately 132 million lives. This includes coverage from the top three national Pharmacy Benefit Managers (PBMs) and broad access across commercial, Medicaid, and Medicare channels, ensuring that a wide range of patients can access their treatments.
Progress in Regulatory Approval for DCCR in Europe
The company is making strides in obtaining regulatory approval for DCCR in Europe. They are currently responding to day 120 questions from the European Medicines Agency (EMA), which is a critical step in expanding their market presence internationally.
Increase in Discontinuation Rates
Despite the positive developments, Soleno faced challenges with an increase in discontinuation rates for VYKAT XR. By the end of the third quarter, the discontinuation rate related to adverse events was approximately 8%, with total discontinuations reaching around 10%.
Impact of Short Seller Report
The release of a short seller report in mid-August disrupted Soleno’s launch trajectory, leading to a decrease in the number of patient start forms and an increase in discontinuations for nonserious adverse events. This report has posed a challenge to maintaining market momentum.
Forward-Looking Guidance
Looking ahead, Soleno Therapeutics remains optimistic about its growth trajectory. The company aims to continue its revenue growth and profitability, with efforts to educate and re-engage patients following the short seller report’s impact. They are also focused on advancing regulatory approval for DCCR in Europe, which could significantly enhance their market reach.
In summary, Soleno Therapeutics’ earnings call highlighted a mix of strong financial performance and market adoption, alongside challenges that need addressing. The overall sentiment was positive, with the company demonstrating resilience and a clear strategy to overcome obstacles and capitalize on growth opportunities.