Soleno Therapeutics (SLNO) Stock Forecast & Price Target

Soleno Therapeutics Inc. possesses a promising outlook due to its focus on developing DCCR, a unique therapeutic candidate with the ability to activate KATP channels, which may have significant implications for treating rare diseases. The company's financial projections, employing a discounted cash flow (DCF) model with a weighted average cost of capital (WACC) of 8.7% and an anticipated terminal growth rate following patent expiration, suggest solid fundamentals despite potential challenges. Furthermore, the rarity of conditions such as diabetes and pulmonary edema, affecting only a small percentage of the population, underscores the potential market exclusivity and value proposition of their innovative treatment solutions.

Soleno Therapeutics has experienced a significant 20% decline in stock value over the past month, raising concerns about its market performance. The company faces challenges related to patient access and uptake of its therapeutic VYKAT, primarily attributed to payer restrictions and the demands on physicians managing large patient populations. Additionally, while compliance among patients is high, the backlog in patient visits is expected to contribute to delayed prescription growth, further complicating the company’s financial outlook.