Soleno Therapeutics, a biopharmaceutical company focused on rare disease treatments, has successfully raised $200 million through a public offering to fund the commercialization of VYKAT XR, the first FDA-approved therapy specifically designed to address hyperphagia in individuals with Prader-Willi syndrome.
The Redwood City, California-based company priced 2,352,941 shares of common stock at $85.00 per share on July 10, 2025. The offering includes a 30-day option for underwriters to purchase an additional 352,941 shares at the same price, which could increase total proceeds beyond the initial $200 million target.
Historic FDA Approval Drives Funding Strategy
VYKAT XR received FDA approval on March 26, 2025, representing a breakthrough for patients with Prader-Willi syndrome, a rare genetic disorder characterized by insatiable hunger and other complex symptoms. The approval marks the first therapeutic option specifically targeting hyperphagia in this patient population, addressing a significant unmet medical need.
Soleno plans to deploy the net proceeds from the offering primarily toward the commercial launch of VYKAT XR in the United States. The company has outlined a comprehensive strategy that extends beyond domestic commercialization, with funding allocated for regulatory and market development activities in the European Union.
Expansion Plans and Research Investment
Beyond the immediate commercialization efforts, Soleno intends to use portions of the proceeds to advance further research and development initiatives. The company has indicated that funds will support general corporate purposes, including working capital, capital expenditures, additional clinical trials, and other corporate expenses.
The funding strategy also includes potential acquisitions of complementary products, technologies, or businesses, though Soleno has not disclosed any specific agreements or commitments for such transactions at this time.
Strong Underwriter Support
The public offering was managed by a consortium of prominent investment banks, with Goldman Sachs & Co. LLC, Guggenheim Securities, TD Cowen, Cantor, and Oppenheimer & Co. serving as joint book-running managers. The offering is expected to close on or about July 11, 2025, subject to customary closing conditions.
The successful pricing and strong institutional support reflect investor confidence in Soleno's commercial prospects and the significant market opportunity presented by VYKAT XR as the first approved treatment for Prader-Willi syndrome hyperphagia.
