Neurocrine Bids $2.5 Billion for Soleno Therapeutics, a 30% Premium to Friday's Close
NEW YORK, April 6 —
Neurocrine Biosciences is nearing a deal to buy Soleno Therapeutics for over $2.5bn, reportedly in the low-to-mid $50s per share.
- SLNO closed Friday at $39.49. A deal in the low $50s implies roughly 27-35% upside from that price.
- Soleno generated $190mn in revenue in 2025, the first year of its only commercial product. Net income flipped to $21mn from a $176mn loss the year before.
- No official announcement yet. Watch for confirmed per-share price and expected closing timeline.
What Actually Happened
The Financial Times reported that Neurocrine, a $14bn neuroscience company best known for its tardive dyskinesia drug Ingrezza, is in advanced talks to acquire Soleno. The target: VYKAT XR, the first and only FDA-approved treatment for hyperphagia in Prader-Willi syndrome, a rare genetic disorder affecting roughly 10,000-12,000 patients in the U.S. The drug was approved in March 2025 and hit $190mn in sales within nine months. Soleno had 859 active patients on the drug by year end, representing over 12% of the addressable U.S. market in under a year. That kind of ramp in rare disease is hard to find, and Neurocrine clearly noticed.
The Catch
The offer price sounds generous until you remember where this stock was six months ago. Before a Scorpion Capital short report in August 2025 alleged safety issues, including reports of children hospitalized for potential heart failure, SLNO traded above $63. The stock cratered 27% on November 5 after management acknowledged the short report had disrupted the launch, slowing new patient starts and increasing discontinuations. A securities class action lawsuit followed, with a May 5 deadline for lead plaintiff. Neurocrine is essentially buying a damaged asset at a discount to its pre-crisis price. For current holders who bought near the top, a deal in the low $50s does not make them whole. For Neurocrine, the bet is that the safety concerns are manageable and the launch trajectory recovers. That is a genuine medical question, not a financial one, and the acquiring company will own that risk.
Bottom Line
This deal makes strategic sense for both sides. Soleno shareholders get a clean exit from a stock weighed down by litigation and safety overhang. Neurocrine gets a first-in-class rare disease franchise doing $190mn in year one with 88% of the addressable market still untapped. The price looks fair, not generous. If you own SLNO below $40, you are looking at a nice return. If you are thinking about buying the spread, the risk is regulatory or antitrust delay killing the deal. The number to watch: the confirmed per-share price. Every dollar above $50 shifts the calculus for whether this was an opportunistic buy or a full-value offer.
Soleno Therapeutics does not yet have a Basis Report. Generate a full SLNO analysis here to dig into the financials before the deal closes.
Basis Report does not hold positions in securities discussed. This is not investment advice.