BUZZ-Stifel resumes Soleno coverage with 'buy' rating, citing potential of rare disease drug

Reuters
03-06
BUZZ-Stifel resumes Soleno coverage with 'buy' rating, citing potential of rare disease drug

** Brokerage Stifel resumes coverage on drug developer Soleno Therapeutics SLNO.O with a "buy" rating and a PT of $74

** SLNO's experimental rare-disease drug DCCR has an 80% chance of an FDA approval for the treatment of a rare genetic disorder known as Prader-Willi syndrome - brokerage

** Prader-Willi syndrome affects parts of the body with constant hunger, cognitive impairment and behavioral issues

** Brokerage believes that the FDA will be flexible in the approval process, given the significant unmet need for this rare disease

** We expect sales exceeding $1.5 billion, given that the loss of exclusivity is not expected until the mid-2030s - Stifel

** "We model a blockbuster opportunity that implies meaningful potential upside to the stock. We also think M&A is likely a plausible upside case as well" - Stifel analysts

** Stock down 5% in the past 12 months

(Reporting by Padmanabhan Ananthan)

((Padmanabhan.Ananthan@thomsonreuters.com;))

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