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Shares of Solano Therapeutics are surging after winning US FDA approval for its new drug to treat excessive hunger and people with Prader-Willi syndrome, a genetic disorder that leads to physical, mental, and behavioral problems. Being hungry all the time is a key feature of the syndrome, and analysts say that this approval is an important catalyst for the stock. Shares are moving to the upside ripping higher by more than 40% during today's activity.

Yeah, you see this in the biotech world, right? Where, um, they hit and the the stock goes up. That's because Solano is a pre-revenue company. This would be their first product. So, obviously, if they get a product, that would be a big deal. The product is called Vycat, if I am saying that correctly. It is indeed to treat this syndrome, which is a relatively rare syndrome, but you get these sort of rare disease drugs that can be a big hit, um, because they are usually priced at relatively high levels. So that's something that is going to be in focus for analysts, where is this going to be priced and, um, what is that going to mean for the future revenue of the company?

Yeah, one of those such analysts over at Piper Sandler reaffirming their optimistic stance. They have a $93 price target on the stock. And of course, we're looking at shares just jumping as we mentioned a moment ago here, just they're still a little shy of that price target for certain here on the day.

Yes. Right, because maybe when they eventually actually start selling the thing and seeing revenue come in, maybe then there's analysts thinking more, um, signs for upside, more room for upside. One more thing to mention here is with this approval, it's a so-called clean label without warnings, which, um, some analysts were calling a best-case scenario where you don't want sort of warnings of dire side effects to be on the label that could limit the sales.

Sure. Good note. Julie, thanks so much for breaking this down.

Good to be here.

Appreciate it.