Soleno Therapeutics Provides Corporate Update and Reports First Quarter 2023 Financial Results
REDWOOD CITY, Calif., May 09, 2023 (GLOBE NEWSWIRE) -- Soleno Therapeutics, Inc. (Soleno) (NASDAQ: SLNO), a clinical-stage biopharmaceutical company developing novel therapeutics for the treatment of rare diseases, today provided a corporate update and reported financial results for the first quarter ended March 31, 2023.
First Quarter 2023 and Recent Corporate Highlights
- Completed enrollment in the randomized withdrawal period of Study C602, a long-term treatment study of Diazoxide Choline (DCCR) Extended-Release tablets for the treatment of Prader-Willi syndrome (PWS).
- The U.S. Food and Drug Administration previously acknowledged that data from the study has the potential to support a New Drug Application (NDA) submission for DCCR.
- Top-line data continue to be expected in the third quarter 2023.
- Received
$10 million in connection with closing of December 2022 Securities Purchase Agreement with Nantahala Capital Management, Abingworth and Vivo Capital, triggered by announcement of enrollment completion.
“We are very pleased to have recently completed enrollment in the randomized withdrawal phase of Study C602 and would like to thank the participants, their families and the study sites for helping us reach this important milestone,” said Anish Bhatnagar, M.D., Chief Executive Officer of Soleno Therapeutics. “We continue to be on track for the availability of top-line data in the third quarter of 2023. Furthermore, completing enrollment satisfied the closing condition on our December 2022 Securities Purchase Agreement, enabling us to receive
Financial Results
Soleno’s current research and development efforts are primarily focused on advancing its lead product candidate, DCCR, for the treatment of PWS, through late-stage clinical development.
First Quarter 2023 Financial Results
As of March 31, 2023, Soleno had cash and cash equivalents of approximately
Research and development expenses for the three months ended March 31, 2023, were
General and administrative expenses for the three months ended March 31, 2023, were
The change in fair value of contingent consideration is a result of Soleno remeasuring at the end of each reporting period its obligation to make cash payments of up to
Total other income was approximately
Net loss for the three months ended March 31, 2023, was
About PWS
The Prader-Willi Syndrome Association USA estimates that PWS occurs in one in every 15,000 live births in the U.S. The hallmark symptom of this disorder is hyperphagia, a chronic feeling of insatiable hunger that severely diminishes the quality of life for PWS patients and their families. Additional characteristics of PWS include behavioral problems, cognitive disabilities, low muscle tone, short stature (when not treated with growth hormone), the accumulation of excess body fat, developmental delays, and incomplete sexual development. Hyperphagia can lead to significant morbidities (e.g., obesity, diabetes, cardiovascular disease) and mortality (e.g., stomach rupture, choking, accidental death due to food seeking behavior). In a global survey conducted by the Foundation for Prader-Willi Research,
About DCCR (Diazoxide Choline) Extended-Release Tablets
DCCR is a novel, proprietary extended-release dosage form containing the crystalline salt of diazoxide and is administered once-daily. The parent molecule, diazoxide, has been used for decades in thousands of patients in a few rare diseases in neonates, infants, children and adults, but has not been approved for use in PWS. Soleno conceived of and established extensive patent protection on the therapeutic use of diazoxide and DCCR in patients with PWS. The DCCR development program is supported by data from five completed Phase 1 clinical studies in healthy volunteers and three completed Phase 2 clinical studies, one of which was in PWS patients. In the PWS Phase 3 study, DCCR showed promise in addressing hyperphagia, the hallmark symptom of PWS, as well as several other symptoms such as aggressive/destructive behaviors, fat mass and other metabolic parameters.
About Soleno Therapeutics, Inc.
Soleno is focused on the development and commercialization of novel therapeutics for the treatment of rare diseases. The company’s lead candidate, DCCR extended-release tablets, a once-daily oral tablet for the treatment of Prader-Willi syndrome (PWS), is currently being evaluated in a Phase 3 clinical development program. For more information, please visit www.soleno.life.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this press release are forward-looking statements, including statements regarding the closing of the warrant financing under the Securities Purchase Agreement, the receipt of top-line data from the randomized withdrawal period, and the timing of any regulatory process or ultimate approvals and determining a path forward for DCCR for the treatment of PWS. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, including the risks and uncertainties associated with market conditions, as well as risks and uncertainties inherent in Soleno’s business, including those described in the company's prior press releases and in the periodic reports it files with the SEC. The events and circumstances reflected in the company's forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Except as required by applicable law, the company does not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.
Corporate Contact:
Brian Ritchie
LifeSci Advisors, LLC
212-915-2578
| Soleno Therapeutics, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In thousands except share and per share data) | ||||||||
| March 31, 2023 | December 31, 2022 | |||||||
| Assets | (Unaudited) | |||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 7,874 | $ | 14,602 | ||||
| Prepaid expenses and other current assets | 1,253 | 1,045 | ||||||
| Total current assets | 9,127 | 15,647 | ||||||
| Long-term assets | ||||||||
| Property and equipment, net | 22 | 26 | ||||||
| Operating lease right-of-use assets | 53 | 131 | ||||||
| Intangible assets, net | 10,207 | 10,693 | ||||||
| Other long-term assets | 126 | - | ||||||
| Total assets | $ | 19,535 | $ | 26,497 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 2,778 | $ | 1,777 | ||||
| Accrued compensation | 721 | 1,675 | ||||||
| Accrued clinical trial site costs | 3,531 | 3,222 | ||||||
| Operating lease liabilities | 39 | 155 | ||||||
| Other current liabilities | 692 | 484 | ||||||
| Total current liabilities | 7,761 | 7,313 | ||||||
| Long-term liabilities | ||||||||
| 2018 PIPE Warrant liability | 1 | 1 | ||||||
| Contingent liability for Essentialis purchase price | 9,134 | 8,835 | ||||||
| Total liabilities | 16,896 | 16,149 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity | ||||||||
| Preferred stock, | - | - | ||||||
| Common stock, | 8 | 8 | ||||||
| Additional paid-in-capital | 248,393 | 247,762 | ||||||
| Accumulated deficit | (245,778 | ) | (237,422 | ) | ||||
| Accumulated other comprehensive income | 16 | - | ||||||
| Total stockholders’ equity | 2,639 | 10,348 | ||||||
| Total liabilities and stockholders’ equity | $ | 19,535 | $ | 26,497 | ||||
| Soleno Therapeutics, Inc. | ||||||||
| Condensed Consolidated Statements of Operations and Comprehensive Loss | ||||||||
| (unaudited) | ||||||||
| (In thousands except share and per share data) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2023 | 2022 | |||||||
| Operating expenses | ||||||||
| Research and development | $ | 5,316 | $ | 3,988 | ||||
| General and administrative | 2,854 | 2,643 | ||||||
| Change in fair value of contingent consideration | 299 | (858 | ) | |||||
| Total operating expenses | 8,469 | 5,773 | ||||||
| Operating loss | (8,469 | ) | (5,773 | ) | ||||
| Other income | ||||||||
| Change in fair value of warrants liabilities | - | 27 | ||||||
| Interest income | 113 | 22 | ||||||
| Total other income | 113 | 49 | ||||||
| Net loss | $ | (8,356 | ) | $ | (5,724 | ) | ||
| Other comprehensive income (loss) | ||||||||
| Foreign currency translation adjustment | 16 | (2 | ) | |||||
| Total comprehensive loss | $ | (8,340 | ) | $ | (5,726 | ) | ||
| Net loss per common share, basic and diluted | $ | (0.88 | ) | $ | (1.07 | ) | ||
| Weighted-average common shares outstanding used to calculate basic and diluted net loss per common share | 9,447,350 | 5,334,712 | ||||||
