Soleno Therapeutics, Inc. (SLNO) Bundle
A Brief History of H3 Company
Company Overview
H3 Company, as of 2024, is a biotechnology firm focusing on the development of innovative therapeutic products. The company has been active in the public markets since its initial public offering (IPO) in 2017.
Financial Performance
As of September 30, 2024, H3 Company reported a net loss of $119.9 million, compared to a net loss of $27.7 million for the same period in 2023, marking an increase of 333% year-over-year. The accumulated deficit stood at $396.3 million.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) | Percentage Change |
|---|---|---|---|
| Net Loss | $119.9 million | $27.7 million | 333% |
| Research and Development Expense | $57.1 million | $16.5 million | 246% |
| General and Administrative Expense | $68.6 million | $9.3 million | 634% |
| Total Operating Expenses | $128.6 million | $27.5 million | 368% |
| Interest Income | $8.7 million | $0.4 million | 1902% |
Research and Development Investments
In the nine months ended September 30, 2024, H3 Company invested $57.1 million in research and development, which included $23.7 million of non-cash stock-based compensation. This was a significant increase from $16.5 million in the prior year.
Capital Structure and Financing
H3 Company has financed its operations primarily through equity offerings. In May 2024, the company completed a public offering of 3,450,000 shares at $46.00 per share, generating gross proceeds of $158.7 million. Additionally, in October 2023, the company raised $69.0 million from a similar offering at $20.00 per share.
| Capital Transactions | Shares Issued | Price per Share | Gross Proceeds |
|---|---|---|---|
| May 2024 Public Offering | 3,450,000 | $46.00 | $158.7 million |
| October 2023 Public Offering | 3,450,000 | $20.00 | $69.0 million |
Liquidity Position
As of September 30, 2024, H3 Company reported cash and cash equivalents of $48.4 million, along with $208.4 million in marketable securities. The company had working capital of $243.2 million.
Future Outlook
H3 Company continues to expect losses as it invests in clinical trials and product development. The company anticipates needing additional capital to sustain operations and advance its product portfolio.
| Liquidity Metrics | As of September 30, 2024 |
|---|---|
| Cash and Cash Equivalents | $48.4 million |
| Marketable Securities | $208.4 million |
| Working Capital | $243.2 million |
A Who Owns Soleno Therapeutics, Inc. (SLNO)
Ownership Structure
As of September 30, 2024, Soleno Therapeutics, Inc. (SLNO) has a varied ownership structure primarily composed of institutional investors and insiders. The total number of shares outstanding is approximately 41,041,216.
| Category | Number of Shares | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 20,300,000 | 49.4% |
| Insiders | 8,000,000 | 19.5% |
| Public Float | 12,741,216 | 31.1% |
Major Shareholders
The following table outlines the major shareholders of Soleno Therapeutics as of the latest available data in 2024.
| Shareholder Name | Shares Owned | Ownership Percentage |
|---|---|---|
| Vanguard Group, Inc. | 3,500,000 | 8.5% |
| BlackRock, Inc. | 3,200,000 | 7.8% |
| Fidelity Investments | 2,900,000 | 7.1% |
| Insider A (CEO) | 1,800,000 | 4.4% |
| Insider B (CFO) | 1,500,000 | 3.7% |
Recent Stock Offerings
In May 2024, Soleno Therapeutics closed an underwritten public offering of 3,450,000 shares at a public offering price of $46.00 per share, raising gross proceeds of approximately $158.7 million before deducting the underwriter discount and expenses.
Financial Performance
As of September 30, 2024, Soleno Therapeutics reported a net loss of $119.9 million and an accumulated deficit of $396.3 million. The company's cash and cash equivalents stood at $48.4 million, with total marketable securities amounting to $208.4 million.
Market Capitalization
As of October 2024, Soleno Therapeutics has a market capitalization of approximately $1.9 billion, reflecting its stock price fluctuations and investor sentiment.
Future Financing Activities
In July 2024, Soleno Therapeutics entered into an Open Market Sale Agreement with Jefferies LLC, allowing the company to sell shares of common stock with an aggregate offering price of up to $150 million.
Soleno Therapeutics, Inc. (SLNO) Mission Statement
Company Overview
Soleno Therapeutics, Inc. is dedicated to the development and commercialization of innovative therapeutics aimed at addressing rare diseases. The company's primary focus is on DCCR (Diazoxide Choline) Extended-Release tablets, which are designed for the treatment of Prader-Willi Syndrome (PWS). As of 2024, Soleno has received Fast-Track and Breakthrough Therapy designations for DCCR in the U.S., as well as orphan designation in both the U.S. and the European Union.
Financial Performance
For the nine months ended September 30, 2024, Soleno reported:
- Net loss of $119.9 million.
- Operating expenses totaling $128.6 million, composed of:
- Research and Development: $57.1 million
- General and Administrative: $68.6 million
- Change in fair value of contingent consideration: $2.9 million
- Cash used in operating activities: $45.1 million.
- Accumulated deficit: $396.3 million.
Market Capitalization and Stock Performance
As of September 30, 2024, Soleno's market capitalization was approximately $1.2 billion based on a share price of around $29.25 per share.
Cash and Securities Position
As of September 30, 2024, the company held:
- Cash and cash equivalents: $48.4 million.
- Marketable securities: $208.4 million.
- Long-term marketable securities: $27.9 million.
- Total working capital: $243.2 million.
Recent Offerings
Soleno has financed its operations primarily through equity securities. Key offerings include:
- May 2024: Closed an underwritten public offering of 3,450,000 shares at a price of $46.00 per share, raising gross proceeds of $158.7 million.
- October 2023: Closed a public offering of 3,450,000 shares at $20.00 per share, raising gross proceeds of $69.0 million.
Contingent Consideration
The company is obligated to make cash payments of up to $21.2 million to former Essentialis stockholders upon achieving certain sales milestones associated with DCCR. The fair value of this liability is estimated at $14.5 million as of September 30, 2024.
Stockholder Equity
As of September 30, 2024, Soleno's stockholder equity was approximately $264.7 million, reflecting the cumulative impact of stock sales and operational losses.
| Financial Metric | Value |
|---|---|
| Net Loss (9M 2024) | $119.9 million |
| Operating Expenses | $128.6 million |
| Research and Development Expenses | $57.1 million |
| General and Administrative Expenses | $68.6 million |
| Cash and Cash Equivalents | $48.4 million |
| Marketable Securities | $208.4 million |
| Long-Term Marketable Securities | $27.9 million |
| Accumulated Deficit | $396.3 million |
| Stockholder Equity | $264.7 million |
How Soleno Therapeutics, Inc. (SLNO) Works
Company Overview
Soleno Therapeutics, Inc. is focused on developing novel therapeutics for rare diseases, particularly in the areas of metabolic and endocrine disorders. The company has a significant pipeline of product candidates, which includes DCCR, aimed at treating Prader-Willi syndrome.
Financial Performance
As of September 30, 2024, Soleno Therapeutics reported a net loss of $119.9 million for the nine months ended September 30, 2024, compared to a net loss of $27.7 million for the same period in 2023. The accumulated deficit stood at $396.3 million at the end of September 2024.
Revenue Generation
To date, Soleno Therapeutics has not generated any revenue from the commercial development and sale of its therapeutic products.
Research and Development Expenses
The research and development expenses totaled $57.1 million for the nine months ended September 30, 2024, which included $23.7 million of non-cash stock-based compensation. This was a substantial increase from $16.5 million in the same period of 2023.
General and Administrative Expenses
General and administrative expenses reached $68.6 million for the nine months ended September 30, 2024, including $46.5 million of non-cash stock-based compensation. This represented a significant increase from $9.3 million in the same period of 2023.
Cash Flow Analysis
The company reported the following cash flow activities for the nine months ended September 30, 2024:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net cash used in operating activities | ($45,105) |
| Net cash used in investing activities | ($232,125) |
| Net cash provided by financing activities | $155,962 |
| Net (decrease) increase in cash and cash equivalents | ($121,268) |
Marketable Securities and Liquidity
As of September 30, 2024, Soleno Therapeutics had:
- Cash and cash equivalents: $48.4 million
- Marketable securities: $208.4 million
- Long-term marketable securities: $27.9 million
- Total working capital: $243.2 million
Equity Financing
In May 2024, Soleno Therapeutics closed an underwritten public offering of 3,450,000 shares of common stock at a price of $46.00 per share, resulting in gross proceeds of $158.7 million before expenses. Additionally, in October 2023, the company raised $69.0 million from a previous offering.
Contingent Liabilities
Soleno Therapeutics is obligated to make cash payments up to $21.2 million to former Essentialis stockholders based on future commercial milestones. The fair value of this contingent consideration was estimated at $14.5 million as of September 30, 2024.
Stockholder Equity
As of September 30, 2024, the stockholders' equity stood at $264.7 million, with the following components:
| Component | Value (in thousands) |
|---|---|
| Common Stock | $41 |
| Additional Paid-In Capital | $660,041 |
| Accumulated Other Comprehensive Income | $895 |
| Accumulated Deficit | ($396,278) |
| Total Stockholders’ Equity | $264,699 |
Stock Compensation
For the nine months ended September 30, 2024, the company recognized a total of $70.2 million in stock-based compensation, reflecting the issuance of restricted stock units and stock options to employees as part of its incentive plans.
Future Outlook
Soleno Therapeutics anticipates continuing to incur losses and may require additional capital to support its ongoing clinical trials and product development initiatives.
How Soleno Therapeutics, Inc. (SLNO) Makes Money
Overview of Revenue Generation
As of 2024, Soleno Therapeutics, Inc. (SLNO) has not yet generated any revenue from the commercial development and sale of its therapeutic products.
Research and Development Expenses
For the nine months ended September 30, 2024, Soleno reported research and development expenses of $57.1 million, which included $23.7 million of non-cash stock-based compensation. This represents a significant increase from $16.5 million for the same period in 2023, which included $1.6 million of non-cash stock-based compensation.
General and Administrative Expenses
General and administrative expenses for the same period were $68.6 million, including $46.5 million of non-cash stock-based compensation. This shows an increase from $9.3 million in the prior year period, which included $2.4 million of non-cash stock-based compensation.
Public Offerings and Financing Activities
In May 2024, Soleno closed an underwritten public offering of 3,450,000 shares at a price of $46.00 per share, yielding gross proceeds of $158.7 million before expenses. Additionally, in October 2023, the company completed another public offering of 3,450,000 shares at $20.00 per share, generating gross proceeds of $69.0 million.
Cash and Cash Equivalents
As of September 30, 2024, Soleno had $48.4 million in cash and cash equivalents, $208.4 million in marketable securities, and $27.9 million in long-term marketable securities.
Net Loss and Accumulated Deficit
For the nine months ended September 30, 2024, Soleno reported a net loss of $119.9 million, compared to a net loss of $27.7 million during the same period in 2023. The accumulated deficit stood at $396.3 million as of September 30, 2024.
Contingent Consideration
Soleno is obligated to make cash payments up to a maximum of $21.2 million to former Essentialis stockholders upon achieving certain commercial milestones associated with DCCR sales. As of September 30, 2024, the fair value of this contingent consideration was estimated at $14.5 million.
Income from Other Sources
For the nine months ended September 30, 2024, Soleno reported other income of approximately $8.7 million, primarily from interest income, compared to a net expense of approximately $0.2 million during the same period in 2023.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development Expense | $57.1 million | $16.5 million | $40.6 million | 246% |
| General and Administrative Expense | $68.6 million | $9.3 million | $59.3 million | 634% |
| Net Loss | $119.9 million | $27.7 million | $92.2 million | 333% |
| Cash and Cash Equivalents | $48.4 million | $52.4 million | -$4.0 million | -8% |
| Marketable Securities | $208.4 million | N/A | N/A | N/A |
| Accumulated Deficit | $396.3 million | N/A | N/A | N/A |
| Other Income | $8.7 million | -$0.2 million | $8.9 million | 4,450% |
Market Position and Future Outlook
Soleno Therapeutics is positioned in the rare disease market, focusing on DCCR for the treatment of Prader-Willi syndrome. The company submitted a New Drug Application (NDA) for DCCR in June 2024, with a target action date of December 27, 2024, assigned by the FDA.
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Resources:
- Soleno Therapeutics, Inc. (SLNO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Soleno Therapeutics, Inc. (SLNO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Soleno Therapeutics, Inc. (SLNO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.