Neurocrine Acquires Soleno Therapeutics for $2.9 Billion

Neurocrine Biosciences announced on Monday an all-cash acquisition of Soleno Therapeutics for approximately $2.9 billion, marking a strategic expansion into treatments for metabolic disorders associated with rare genetic conditions. The deal, valued at $53 per share, represents a 34 percent premium over Soleno's closing price the previous day and is expected to close within the next 90 days.

Under the agreement, Neurocrine will launch a cash tender offer for all outstanding shares of Soleno through a subsidiary. The transaction will be funded primarily with Neurocrine's existing cash reserves of about $2.5 billion, supplemented by a modest amount of prepayable debt, and is not subject to a financing condition. Soleno shares surged more than 32 percent to close at $52.26, with trading volume reaching 58 million shares, well above its three-month average of 2.6 million. Neurocrine shares dipped slightly by 0.62 percent to $153 per share.

The acquisition centers on Soleno's lead product, VYKAT XR, the first and only FDA-approved treatment for hyperphagia, a hallmark symptom of Prader-Willi syndrome characterized by intense, persistent hunger that can lead to severe obesity,...