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Fund Bets Big on Biotech's Turnaround
5 Dec
Summary
- Braidwell initiated a new position, adding 1.3 million shares.
- The stake in Soleno Therapeutics is valued at $86.7 million.
- Soleno reported its first profitable quarter with $66 million revenue.
Braidwell, a Connecticut-based investment fund, has established a new significant holding in Soleno Therapeutics. According to an SEC filing from November 14, Braidwell acquired approximately 1.3 million shares, amounting to a $86.7 million stake. This new investment now constitutes 3.5% of the fund's total reportable U.S. equity assets.
The investment comes as Soleno Therapeutics demonstrates improving financial performance. The company announced its first-ever profitable quarter, achieving $66 million in product revenue, a sequential increase from the previous quarter. This profitability is attributed to the successful commercial launch and scaling of its product, VYKAT XR, which now serves a growing patient base.
With a robust cash position of $556.1 million at the end of the third quarter, bolstered by a recent equity offering, Soleno appears to be successfully transitioning. Braidwell's substantial investment signals confidence in the company's evolution from a clinical-stage development firm to a commercially viable entity, despite historical stock performance.
