Neurocrine to Buy Soleno for about $2.9B

Neurocrine Biosciences agreed to acquire Soleno Therapeutics in a deal worth about $2.9 billion. Neurocrine will pay $53 per share to Soleno shareholders for Soleno, the developer of Vykat XR, the first approved treatment for Prader-Willi syndrome hyperphagia.

The boards of both companies approved the transaction, which is expected to close within 90 days. Financing will come from cash on hand, with Neurocrine also planning to take on a “modest amount of pre-payable debt.”

Vykat XR generated $190 million in sales last year, but Soleno has faced investor questions about growth trajectory and safety after concerns raised by a short-selling activist and subsequent results showing slower patient start forms and higher discontinuations.