Soleno Therapeutics (NASDAQ:SLNO) blasted up in Monday’s trading thanks to a major new financing move. The new financing was sufficient to take Soleno’s share price up over double what it was at the start of Monday’s trading. However, the company gave back some of those gains after hours.
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The big new gain for Soleno came thanks to three major healthcare investment firms: Abingworth, Nantahala Capital, and Vivo Capital. The trio put together a $60 million funding package for Soleno, which specializes in rare disease treatments.
Soleno won’t be getting the full $60 million all at once, though; the funding will arrive in several pre-arranged bursts. When the deal closes, Soleno receives a $10 million shot. Another $15 million will come later, assuming there’s some positive trial data from its latest trials, and a further $35 million will come from FDA approval for the treatment.
The company currently targets Prader-Willi Syndrome, a genetic disorder that brings several symptoms with it. Prader-Willi usually shows up in children, reports note, and can be recognized by a constant hunger starting around age two. While the hefty new investment should help, Soleno has been on a downward cant for most of the year. Just since January 2022, Soleno has lost 65% of its share value.
That’s not Soleno’s only problem, either; Soleno currently has no analyst coverage, which will hamper its ability to draw investors who take recommendations from analysts seriously. Insider trading at Soleno is also negative, with investors selling off $487,300 worth of shares in the last three months alone.
