Soleno Therapeutics said Tuesday its experimental pill helped control hunger signals in a genetic disorder that can lead to obesity. In response, SLNO stock soared by more than 500%.
The company tested 77 patients with Prader Willi syndrome, a genetic disease that causes obesity, intellectual disability and short stature. Patients had been taking Soleno's pill, dubbed DCCR, for two to four years. Over four months, roughly half continued taking DCCR while the others were switched to a placebo.
Abnormally strong hunger signals, a medical term known as hyperphagia, returned after patients switched to the placebo. On a nine-point scale, patients' hunger signals climbed by five points while taking the placebo. Soleno called the results "highly statistically significant."
Now, the company is planning to ask the Food and Drug Administration to approve DCCR in mid 2024.
On today's stock market, SLNO stock catapulted 505% to close at 26.80. Shares closed at 4.43 on Monday.
SLNO Stock: No Unexpected Side Effects
Soleno's DCCR has an orphan drug designation in the U.S. This means the FDA considers it a potential treatment for a rare condition. The FDA previously acknowledged the results of this study, called C602, could support Soleno's request for approval.
The study also examined patients' overall severity of illness and change in condition. Patients showed worsening symptoms after switching to the placebo, Soleno said. Notably, patients didn't report any new or unexpected side effects. Further, no patients dropped out of testing due to side effects.
SLNO stock has a perfect IBD Digital Relative Strength Rating of 99, meaning it has traded in the top 1% of all stocks over the past 12 months.
More to follow.
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