Soleno Therapeutics, Inc. (SLNO): A Bull Case Theory

We came across a bullish thesis on Soleno Therapeutics, Inc. on X.com by seedy19tron. In this article, we will summarize the bulls’ thesis on SLNO. Soleno Therapeutics, Inc.'s share was trading at $62.74 as of October 8th. SLNO’s  forward P/E was 24.15 according to Yahoo Finance.

Soleno Therapeutics (SLNO) is a single-asset company focused on VYKAT XR, the first and only FDA-approved therapy addressing hyperphagia in Prader-Willi Syndrome (PWS) patients aged four and older. PWS is a rare genetic disorder characterized by insatiable hunger, obesity, and elevated mortality risk due to associated comorbidities, affecting roughly 8,000–12,500 individuals in the U.S. and about 20,000 in Europe. VYKAT XR, an extended-release formulation of diazoxide choline, acts as a potassium channel activator to reduce hyperphagia by modulating neuronal activity.

The drug is priced at approximately $500,000 annually for adults, and early commercial momentum has been encouraging, with Q2 revenue of $32.7 million exceeding expectations. By the end of Q2, there were 295 unique prescribers and 646 patient start forms, with an additional ~500 in Q3, bringing total treatments to around 1,000. SLNO estimates peak sales potential between $1.8 billion and $2.6 billion, implying substantial valuation upside, particularly as peers like ACADIA have failed and Aardvark’s upcoming readout represents the only near-term competitive threat.

Safety concerns raised by Scorpion Capital, citing FAERS data on edema, hyperglycemia, and a single death, appear overstated and consistent with known risks in the fragile PWS population, which already faces a 3–4% annual mortality rate. No major new safety updates have emerged since September, and real-world patient feedback includes positive outcomes. With expectations for Q3 2025 revenue exceeding $60–65 million versus consensus $46 million, SLNO’s launch trajectory, limited competition, and manageable safety profile position it for a potential rerating toward $100+ within 12–18 months.

Previously we covered a bullish thesis on CRISPR Therapeutics AG (CRSP) by MADD-Scientis in March 2025, which highlighted the company’s leadership in gene-editing therapies for rare diseases. The company’s stock price has appreciated approximately by 87.4% since our coverage as clinical progress drove investor enthusiasm. The thesis still stands as CRSP continues to advance its pipeline. seedy19tron shares a similar optimism toward Soleno Therapeutics (SLNO) but emphasizes early commercial traction and revenue visibility in the rare disease space.

Soleno Therapeutics, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held SLNO at the end of the second quarter which was 58 in the previous quarter. While we acknowledge the potential of SLNO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.