Soleno (SLNO) Business Update. Taking Profits on Leonardo DRS (DRS)
Soleno (SLNO) gave a business update/reported Q1 results after the close yesterday. Not much new to talk about given the recent (April 29) announcement (covered in a Special Bulletin that day) that the FDA granted the company’s lead drug candidate (DCCR) Breakthrough Therapy Designation for the treatment of adults and children ages 4 years and older with Prader-Willi syndrome (PWS). In concert with that announcement, management had reaffirmed that it’s on track to submit an NDA for DCCR in mid-2024. Breakthrough status should speed up approval (not guaranteed, but expected) and shorten time to first revenue.
Shortly after that announcement Soleno completed a secondary offering to raise around $149 million, bringing total cash up to $307 million at the end of Q1. No change to our rating. Holding on in anticipation of the FDA filing, and eventual approval sending SLNO materially higher. HOLD
Sell Leonardo DRS (DRS)
Today we’re going to continue our trend of taking modest profits when they are available and rotating fresh names into the portfolio (May Issue is next week). That means today we’re letting go of Leonardo DRS (DRS). The stock has “done its job” over the last three or so months and we’ll walk away with a gain of around 8%. It’s not going to buy a vacation home but it’s another in a growing string of gains that have been booked while we let our faster-moving stocks accumulate more significant paper profits. With this sale we have gains on 12 of 15 positions sold in 2024. SELL
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