Soleno Therapeutics entered into an accelerated share repurchase agreement with Jefferies LLC that will see the company pay $100 million in cash to buy back its own common stock. The initial payment is tied to the closing price on November 10, 2025, and will result in the delivery of roughly 1.51 million shares. The program is slated to conclude in the first quarter of 2026, with the final number of shares repurchased determined by the average volume‑weighted price over the transaction period.
The share repurchase follows a landmark quarter for Soleno. In the third quarter of 2025 the company generated $66 million in revenue—more than double the $32.7 million reported in Q2 2025—and posted earnings of $0.47 per share, a 840 % surprise over the consensus estimate of $0.05. Gross margin reached 98.1 %, the highest in the company’s history, and Soleno became profitable for the first time after a $76.6 million net loss in Q3 2024. The sharp turnaround is driven by the commercial launch of VYKAT XR, the first FDA‑approved therapy for hyperphagia in Prader‑Willi syndrome, which has generated strong demand and high pricing power.
The earnings beat is largely attributable to the high‑margin nature of VYKAT XR and disciplined cost management. The drug’s unique market position allows Soleno to maintain a premium pricing strategy, while the company’s lean operating model keeps variable costs low. The combination of robust sales growth and efficient cost control has translated into a gross margin that is among the highest in the specialty‑pharma sector, enabling the company to move from a loss to a profit in a single quarter.
Soleno’s decision to repurchase shares signals management’s confidence in the company’s financial health and future cash‑generation profile. With $556 million in cash, cash equivalents, and marketable securities as of the end of Q3 2025, the firm has ample liquidity to fund the $100 million buyback while still supporting ongoing commercialization and potential pipeline development. The repurchase is expected to lift earnings per share and is viewed by investors as a positive capital‑allocation move that reflects an assessment of the stock’s undervaluation.
Investors reacted positively to the announcement, reflecting confidence in Soleno’s recent profitability and the strategic value of the share‑repurchase program. The market’s favorable response underscores the importance of the company’s first profitable quarter and the perceived upside from the VYKAT XR launch.
Dr. Anish Bhatnagar, CEO and Chairman, said, “These actions demonstrate our confidence in our commercial launch and the compelling opportunity for VYKAT XR to become a foundational therapy for patients with hyperphagia associated with Prader‑Willi syndrome. We achieved profitability in the third quarter of 2025 and believe the expected future cash‑generation profile of our business is significantly underappreciated by the capital markets, making share repurchase a compelling opportunity.”
While Soleno has not issued new forward guidance, the company’s strong cash position and the continued commercialization of VYKAT XR support a trajectory of sustained growth. The accelerated share repurchase, coupled with the company’s first profitable quarter, positions Soleno to enhance shareholder value and maintain momentum in a niche but high‑potential market.
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