Neurocrine Expands with Soleno Acquisition
Neurocrine Biosciences announced a $2.9 billion acquisition of Soleno Therapeutics, aiming to add Vykat XR, a drug for Prader-Willi syndrome, to its portfolio, according to Dealbreaker. The deal was discussed during a Monday conference call where Neurocrine CEO Kyle Gano described Vykat XR as having the profile of a potential blockbuster based on its rapid market uptake since FDA approval a little more than a year ago.
Details of the Acquisition
Soleno Therapeutics has commercialized Vykat XR, a once-daily pill for treating hyperphagia in Prader-Willi syndrome, a rare genetic disease caused by the lack of expression of genes regulating hunger and satiety, leading to morbid childhood obesity and complications such as shorter life expectancy with about half of deaths in those aged 18 or younger. In 2025, Soleno reported $190.4 million in Vykat revenue, including $90 million in the fourth quarter, which helped the company achieve $20.8 million in net income. Vykat XR’s main ingredient is an extended-release formulation of diazoxide choline, originally used for hypoglycemia, and is thought to activate potassium channels affecting hunger and satiety.
Neurocrine’s Portfolio Integration
Neurocrine’s acquisition leverages its experience with rare endocrine disorders, as Vykat XR overlaps with Crenessity, a drug approved in late 2024 for congenital adrenal hyperplasia. Neurocrine’s existing portfolio is led by Ingrezza, which generated $2.5 billion in revenue in 2025, a 4.3% increase from the previous year, and was first approved in 2017 for tardive dyskinesia and later in 2023 for Huntington’s disease. Samir Siddhanti, Neurocrine’s vice president of business development and strategy, noted that the company had monitored Soleno and the Prader-Willi syndrome space, viewing Vykat as a strategic fit at the intersection of neuroscience and endocrinology, according to Dealbreaker.
Challenges in the Prader-Willi Syndrome Space
The Prader-Willi syndrome field includes competitors like Bright Minds Biosciences, Harmony Biosciences, and Rhythm Pharmaceuticals, but has seen setbacks, such as Acadia Pharmaceuticals halting a Phase 3 study last September and Aardvark Therapeutics pausing its Phase 3 trial in February due to cardiac observations. Soleno faced scrutiny from a Scorpion Capital report last August claiming safety issues like pulmonary edema, though Neurocrine CEO Kyle Gano expressed confidence in diazoxide’s safety based on its decades of use and favorable risk-benefit profile in clinical testing. Leerink Partners analyst Marc Goodman reported that pediatric endocrinologists view Vykat as a valuable FDA-approved option, though not all patients are suitable due to side effects like hyperglycemia and edema, with global Prader-Willi patients estimated at 300,000 to 400,000, according to Dealbreaker.
