Soleno Turns First Profit on $66 Million in Revenue — Is This Why One Investor Just Made an $87 Million Bet?

Core Insights - Soleno Therapeutics has achieved profitability for the first time, coinciding with a significant investment from Braidwell, which acquired 1.3 million shares valued at approximately $86.7 million [1][2][6] Company Overview - Soleno Therapeutics specializes in developing therapeutics for rare diseases, with its lead product candidate being Diazoxide Choline Controlled-Release for Prader-Willi Syndrome [5] - As of the latest report, Soleno's market capitalization stands at $2.7 billion, with a trailing twelve months (TTM) revenue of $98.7 million and a net income of ($78.5 million) [4] Financial Performance - In the third quarter, Soleno reported $66 million in product revenue, more than doubling from the previous quarter, and achieved a net income of $26 million, marking its first profitable quarter [7] - The company ended the quarter with $556.1 million in cash and securities, supported by a $230 million equity offering [7] Investment Insights - Braidwell's new position in Soleno represents 3.5% of its reportable U.S. equity assets, indicating confidence in Soleno's transition from a clinical-stage to a commercial-stage company [2][9] - Despite recent gains, Soleno's shares remain down 90% from 2015 levels, highlighting the ongoing risk profile associated with the investment [9]