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We feel now is a pretty good time to analyse Soleno Therapeutics, Inc.'s (NASDAQ:SLNO) business as it appears the company may be on the cusp of a considerable accomplishment. Soleno Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutics for the treatment of rare diseases. The company’s loss has recently broadened since it announced a US$39m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$131m, moving it further away from breakeven. As path to profitability is the topic on Soleno Therapeutics' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
View our latest analysis for Soleno Therapeutics
Soleno Therapeutics is bordering on breakeven, according to the 8 American Biotechs analysts. They expect the company to post a final loss in 2026, before turning a profit of US$106m in 2027. So, the company is predicted to breakeven approximately 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 58% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Soleno Therapeutics' growth isn’t the focus of this broad overview, however, bear in mind that typically a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that Soleno Therapeutics has no debt on its balance sheet, which is rare for a loss-making biotech, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
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There are key fundamentals of Soleno Therapeutics which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Soleno Therapeutics, take a look at Soleno Therapeutics' company page on Simply Wall St. We've also compiled a list of important factors you should further research: