Neurocrine (NBIX.US) invests $2.9 billion to acquire Soleno (SLNO.US) to enter the field of metabolic diseases.

Neurocrine Biosciences (NBIX.US) announced on Monday that it will acquire the rare disease drug company Soleno Therapeutics (SLNO.US) for $2.9 billion in cash, signaling the pharmaceutical company's expansion into the field of metabolic diseases from its focus on the neuroscience field. According to reports, Neurocrine Biosciences proposed to acquire Soleno Therapeutics shares at $53 per share, a premium of about 34% over the previous day's closing price. As of the time of writing, Soleno Therapeutics was up nearly 33% in pre-market trading on Monday. The deal will give Neurocrine Biosciences rights to the drug Vykat XR, the first drug approved in the United States for the treatment of hyperphagia associated with Prader-Willi syndrome, with sales of approximately $190 million within about nine months of its approval in March 2025. Hyperphagia, or intense and persistent hunger, can lead to severe obesity and problems in physical, psychological, and behavioral aspects. According to U.S. government data, the prevalence of this syndrome is approximately 1 case per 20,000 to 30,000 newborns, affecting around 20,000 patients in the United States. BMO Capital Markets analyst Evan Seigerman commented that compared to Neurocrine Biosciences' investigational obesity treatment candidate still in the preclinical testing stage, this deal provides a "more reasonable path into the field of metabolic diseases" considering competition and regulatory barriers. The analyst estimates that Vykat XR is expected to bring in $450 million in sales this year, with global sales exceeding $2 billion by the mid-2030s. Neurocrine Biosciences stated that the transaction, expected to be completed within the next 90 days, will be paid for with existing cash and added that the company plans to borrow a small amount of debt that can be repaid early.