NASDAQ:SLNO Soleno Therapeutics Q1 2025 Earnings Report $76.89 +3.00 (+4.06%) Closing price 05/23/2025 04:00 PM EasternExtended Trading$76.86 -0.03 (-0.03%) As of 05/23/2025 05:19 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings HistoryForecast Soleno Therapeutics EPS ResultsActual EPS-$0.95Consensus EPS -$1.14Beat/MissBeat by +$0.19One Year Ago EPSN/ASoleno Therapeutics Revenue ResultsActual RevenueN/AExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/ASoleno Therapeutics Announcement DetailsQuarterQ1 2025Date5/7/2025TimeAfter Market ClosesConference Call DateWednesday, May 7, 2025Conference Call Time4:30PM ETUpcoming EarningsSoleno Therapeutics' Q2 2025 earnings is scheduled for Wednesday, August 6, 2025, with a conference call scheduled at 4:00 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by Soleno Therapeutics Q1 2025 Earnings Call TranscriptProvided by QuartrMay 7, 2025 ShareLink copied to clipboard.PresentationSkip to Participants Operator00:00:00Greetings, and welcome to the Celeno Therapeutics First Quarter twenty twenty five Earnings Conference Call. At this time, note that all participants are in a listen only mode. A question and answer session will follow the formal presentation. You may press star, one at any time to be placed into the question queue and we ask that you please ask one question and one follow-up, then return to the queue. As a reminder, this conference is being recorded. Operator00:00:36It is now my pleasure to turn the call over to Brian Ritchie of LifeSci Advisors. Please go ahead, Brian. Brian RitchieManaging Director at LifeSci Advisors, LLC00:00:43Thank you, operator. Good afternoon, everyone, and thank you for joining us to discuss Celino Therapeutics' first quarter twenty twenty five financial and operating results. Please note, we'll be making certain forward looking statements today. We refer you to Solano's SEC filings for a discussion of the risks that may cause actual results to differ from the forward looking statements. On the call with me today from Solano are Anish Bhatnagar, Solano's Chairman and Chief Executive Officer Meredith Manning, Solano's Chief Commercial Officer and Jim McInnis, Solano's Chief Financial Officer. Brian RitchieManaging Director at LifeSci Advisors, LLC00:01:24Anish will begin with a review of the company's progress during the first quarter and subsequent period including FDA approval of VICAT XR and commercial launch. Meredith will then review the company's commercial progress to date and Jim will cover the company's financial statements for the first quarter. We will then open the call for questions. With that, I will now turn the call over to Anish. Anish BhatnagarCEO at Soleno Therapeutics00:01:52Thank you, Brian, and thank you everyone for joining us for our very first quarterly results earning call. It's been a momentous couple of months for our company highlighted by our announcement on March 26 that the FDA approved VICAT XR, previously known as Dioxide Choline Extended Release Tablets or DCCR, as the first medicine for the treatment of hyperphagia in people four years of age and older with Prader Willi syndrome or PWS. This approval is the culmination of many years of tireless work by the entire Celeno team without whom none of this would have been possible. I would also like to recognize the significant contributions of the entire PWS community, including study participants and their families, the study investigators and study site team members, as well as the major PWS advocacy organizations, the Foundation for Productivity Research and the PWSA USA and The UK. We are very pleased to offer VICAT XR for individuals and families who have been waiting for a treatment option for the symptoms related to this devastating disease since it was first recognized in 1956. Anish BhatnagarCEO at Soleno Therapeutics00:03:03Following approval and reflecting our progress in establishing our commercial readiness, we were able to move very quickly to launch. We announced on April 14 that the first patients had received and are currently being treated with VICAT XR and this was about a week ahead of our internal forecast. Meredith will provide some additional color on the initial launch in a moment. For those who may be new to the story, I would like to briefly remind you of the key characteristics of PWS and discuss the impact that hyperphagia can have on the lives of people with PWS, their caregivers, their families and the healthcare professionals who treat them. PWS is a rare genetic disease. Anish BhatnagarCEO at Soleno Therapeutics00:03:46It occurs spontaneously in about one in fifteen thousand to one in twenty five thousand live births due to the deletion or lack of expression of a certain set of genes in chromosome 15. This translates to approximately three hundred to four hundred thousand individuals living with PWS around the world. By the age of around seven or eight years, although sometimes as early as four, individuals with PWS typically will begin to exhibit the hallmark characteristic of the disease, hyperphagia, which is an insatiable desire to eat. This is essentially your brain telling you that you're starving despite having eaten. The only thing families and caregivers have been able to do to try control hyperphagia is restrict access to food such as locking refrigerators, trash cans and pantries. Anish BhatnagarCEO at Soleno Therapeutics00:04:35Constant food preoccupation contributes to significant behavioral problems that can substantially disrupt daily life for those living with PWS and their families. Caregiver burden increases after the onset of hyperphagia and in fact has been measured to be higher than the burden experienced by caregivers for patients with Alzheimer's. So hyperphagia is a truly terrible condition for which no approved treatments have existed until the approval and launch of VICAT XR. Recapping our label, the indication is for treatment of hyperphagia in adults and pediatric patients four years of age and older with PWS. We believe that our label reflects VICAT XR's favorable safety and tolerability profile, contains no box warning, no contraindication for diabetes, no exclusions for severity of hyperphagia, or no requirement for a risk evaluation and mitigation strategy or REMS program. Anish BhatnagarCEO at Soleno Therapeutics00:05:29VICAT XR is to be taken orally once daily. Dosing is weight based. There is a titration period of about six weeks after which all people taking VICAT XR should be on or close to their maintenance dose. The label has clear directions on how physicians should modify the dose if needed to address any side effects and minimize interruptions. The commercial opportunity for VICAT XR as a first to market therapy is significant. Anish BhatnagarCEO at Soleno Therapeutics00:05:58We have used existing claims data to confidently identify approximately twelve thousand individuals diagnosed with PWS in The United States, of which approximately ten thousand should represent our total on label addressable market. This excludes those individuals with PWS who are younger than four years old, others who may not be experiencing hyperphagia or who may have comorbidities that make them ineligible for VICAT XR. As mentioned, as soon as we received FDA approval, we were prepared to begin accepting VICAT XR start forms immediately and patient treatments commenced in mid April. This is a testament to the efforts of Meredith Manning, our CCO, and our world class commercial team whose prelaunch efforts to patients, physicians and payers set the stage for a strong and successful launch and to all of our employees who have worked so hard to prepare the company for this day. I will now turn the presentation over to Meredith to discuss the early days of the launch and a few performance indicators that we plan to provide for the next several quarters to assist you in tracking our progress. Anish BhatnagarCEO at Soleno Therapeutics00:07:04Meredith? Meredith ManningCCO at Soleno Therapeutics00:07:05Thank you, Anish, and good afternoon, everyone. As Anish indicated, the launch readiness activities that we have been diligently executing for the past several months has ensured that we are well positioned to deliver this much needed treatment to patients as quickly as possible. We previously discussed three pillars of activity that we view as crucial to a successful launch. First, to establish VICAT XR as the standard of care in hyperphagia in PWS. Second, to deliver operational excellence. Meredith ManningCCO at Soleno Therapeutics00:07:42And finally, to communicate the compelling VICAT XR value proposition. And while it is still very early in the launch cycle of a new therapy, I am nonetheless very pleased with our launch efforts to date. We are seeing awareness on the part of people living with PWS and their caregivers, a willingness to prescribe on the part of treating physicians, and a recognition of the unmet need on the part of payers. We outlined several performance indicators we plan to provide over the next several quarters to help track our progress. The first of these is patient start forms. Meredith ManningCCO at Soleno Therapeutics00:08:23As of the end of day yesterday, we have received two sixty eight start forms and that's in twenty nine business days since approval. And while it's early, it is very encouraging. We look forward to future quarterly updates when we will have an opportunity to collect more data and identify trends that are emerging. On April 14, we announced the first shipment of VICAT XR to individuals living with hyperphagia in PWS. Since then, many patients have received their first dose of VICAT XR and have started treatment. Meredith ManningCCO at Soleno Therapeutics00:09:01This reflects our dedication to ensuring timely access to treatment. The second performance indicator that we will be providing is the number of prescribers, which is 131 unique prescribers as of yesterday. Our field force is prioritizing engagement with top tier providers with high patient volumes, which includes pediatric and adult endocrinologists, geneticists, and psychiatrists. We have also been impressed with the adoption of VICAT XR from a broad base of prescribers, including those practicing in the community. This expanded reach indicates that our efforts to drive awareness of VICAT XR availability, to communicate the efficacy and safety profile and the need for a therapy across a broad prescribing spectrum is strong. Meredith ManningCCO at Soleno Therapeutics00:09:55Finally, in the future, we will be covering a detailed update on payer coverage. That will be covered live and some color on payer policies, as this is critical to patients initiating and remaining on therapy. We previously talked about our payer outreach, which was mostly focused on emphasizing the complexity of hyperphagia in PWS patients, the consequences of not controlling hyperphagia, and the need for a new therapeutic option. We are very pleased with the feedback we have received from payers as a result of this outreach, and we are confident the VICAT XR value proposition is resonating with commercial and government payers alike. While formal coverage policies can take anywhere from three to six months and sometimes longer to develop and implement, we do expect that VICAT XR will achieve broad payer coverage in The United States. Meredith ManningCCO at Soleno Therapeutics00:10:54We are fully committed to ensuring that VICAT XR is available to all eligible patients and that affordability is not a barrier to treatment. To this end, we have stood up Celena one, our single point of contact for patient services. Selena one was operational day one upon approval and is dedicated to supporting caregivers and healthcare providers in minimizing and mitigating payer access obstacles. I will now turn the call over to Jim for a review of the company's financial statements for the first quarter. Jim MackanessCFO at Soleno Therapeutics00:11:30Thank you, Meredith. We used $32,800,000 of cash in operating activities during the three months ended 03/31/2025 and ended the period with $290,000,000 of cash, cash equivalents and marketable securities compared with $318,600,000 as of 12/31/2024. As we have stated previously, based on our current operating plan, we believe our cash, cash equivalents and marketable securities are sufficient to fund our operations through cash flow breakeven. Furthermore, with the approval of VICAT XR, we now have an additional $75,000,000 available to us in two tranches over the next eighteen months under our loan agreement. Turning now to a few income statement items. Jim MackanessCFO at Soleno Therapeutics00:12:13The company had not commercialized VICAT XR in the three months ended 03/31/2025, and accordingly generated no revenue for the period. Research and development expenses for the first quarter ended 03/31/2025, was $13,500,000 which includes $4,300,000 of non cash stock based compensation. That compares to 14,600,000.0 which includes $2,400,000 of non cash stock based compensation for the same period of 2024. The cadence of our research and development expenditures fluctuate depending upon the state of our clinical programs, timing of manufacturing and other projects as we've moved through submission, approval and now preparation for commercialization. Selling, general and administrative expense for the first quarter ended 03/31/2025 was 29,300,000.0 which includes $10,400,000 of non cash stock based compensation and that compares to $8,500,000 which includes $4,000,000 of non cash stock based compensation for the same period of 2024. Jim MackanessCFO at Soleno Therapeutics00:13:16The increase reflects our ongoing investment in additional personnel and new programs in preparation for commercial launch and in support of our increased business activity. Total other income, net, was CAD2.0 million for the three months ended 03/31/2025, compared to total other income net of CAD2.1 million in the same period of 2024. And our net loss was approximately CAD43.8 million or $0.95 per basic and diluted share for the first quarter ended 03/31/2025 and £21,400,000 or $0.59 per basic and diluted share for the same period in 2024. This concludes the financial overview, and I'll now turn the call back over to Anish for closing remarks. Anish? Anish BhatnagarCEO at Soleno Therapeutics00:14:02Thank you, Jim. While we are very pleased with what we are seeing in the early days of our U. S. Commercial launch, PWS is a global disease that impacts hundreds of thousands of patients around the world. In an effort to make VICAT XR available to as many of these patients as possible, in parallel with our U. Anish BhatnagarCEO at Soleno Therapeutics00:14:21S. Commercial launch, we continue to progress around regulatory pathways in other geographies, the most important of which is The EU. We have stated previously that Europe also has a high unmet need among other patients with PWS. And as with The U. S, the PWS community has strong thought leader support and patients are often concentrated around centers of excellence. Anish BhatnagarCEO at Soleno Therapeutics00:14:43Based on widely cited prevalence data, we estimate that there are as many as nine thousand five hundred patients with PWS in The EU4 and The UK. As we have stated previously, the submission of an MAA to the EMA is planned for the first half of this year. Before we open the call for questions, I want to close by reiterating how pleased we are with the early response we are seeing from the PWS community to the availability of VICAT XR in The U. S. With that said, however, I remind everyone that start forms are a leading indicator and there is a lag between receiving a start form and our specialty pharmacy partner purchasing product from us, which is when we record revenue. Anish BhatnagarCEO at Soleno Therapeutics00:15:23Therefore, as is typical in these types of launches, we expect revenues to start up modestly. It will take time to execute a full commercial launch, which includes patients scheduling visits with their healthcare providers, payers determining coverage policies and the sales team being fully oriented to their territories. I look forward to sharing more details on our launch trajectory during our second quarter results call in August. And with that, we will now open the call to your questions. Operator? Operator00:15:50Thank you, please press followed by 2. And if you are using a speakerphone, please lift the handset first before pressing any keys. Please go ahead and press 1 now if you do have any questions. First question will be from Yasmeen Rahimi at Piper Sandler. Please go ahead. Yasmeen RahimiSr. Research Analyst at Piper Sandler Companies00:16:22Good afternoon, team. Congrats on an outstanding quarter. Two questions. The first one is just could you quantify how soon we could start converting the starting forms into revenue? Second question is what do you project the time to fill to be at this point and how it will change over the course of 2025? Yasmeen RahimiSr. Research Analyst at Piper Sandler Companies00:16:45And I respect your wishes of two questions, and I'll jump back into the queue. Anish BhatnagarCEO at Soleno Therapeutics00:16:51Jim, you want to take the first question? Jim MackanessCFO at Soleno Therapeutics00:16:53Yes, sure. Yes, so, obviously, there's a Jim MackanessCFO at Soleno Therapeutics00:16:56number of steps that have to go through to get start form into the hands of the specialty pharmacy and qualify if you like for commercial drug, because you're talking about the commercial drug. And then they in turn have to turn around and obviously place the order. And we anticipate that they will be cautious if you like in the inventory build that they want to take. So that's why we're just being mindful and say we think modest revenues for Q2. Anish BhatnagarCEO at Soleno Therapeutics00:17:20Do want to Anish BhatnagarCEO at Soleno Therapeutics00:17:20take the second one, Matthew? Meredith ManningCCO at Soleno Therapeutics00:17:21Sure. Thank you. Thank you for the question. We're very happy with the speed in which we're able to convert the current start forms over to ship product. You know, it's too soon right now. Meredith ManningCCO at Soleno Therapeutics00:17:35We're only twenty nine days in to give specific details on the turnaround time, but we're seeing what's you know, ordinary with other rare disease launches, and we'll look forward to giving more information on the next call. Yasmeen RahimiSr. Research Analyst at Piper Sandler Companies00:17:49Thank you, Meredith, and thank you, Jim and Anish. Operator00:17:53Thank you. Next question will be from Debjit Chattopadhyay at Guggenheim Securities. Please go ahead. Debjit ChattopadhyaySenior Managing Director at Guggenheim Partners00:18:02Hey, good afternoon. Thanks for taking my question and congrats. I have a couple. If I remember correctly, about one hundred and twenty seven patients were enrolled in Debjit ChattopadhyaySenior Managing Director at Guggenheim Partners00:18:14the Phase III program. What percentage of those patients are reflected in the current stock forms? Anish BhatnagarCEO at Soleno Therapeutics00:18:22Meredith, do you want to take that? Meredith ManningCCO at Soleno Therapeutics00:18:24Yeah, happy to take that. So as you'll recall in the randomized withdrawal period, we had a total of seventy seven patients. Sixty of those patients are here in The United States. And so the majority of those patients we've received their start form and we're looking at converting them over. So, we're very pleased with how fast our clinical operations team is executing on converting those patients. Debjit ChattopadhyaySenior Managing Director at Guggenheim Partners00:18:51Awesome. And in terms of the free drug that patients are receiving right now, how should we think about it? How many days of free drug before they reimburse therapy? Meredith ManningCCO at Soleno Therapeutics00:19:05Yeah, so I'll just remind everybody that we're really early in the launch and it takes easily six months for many payers to arrive at a full coverage policy, sometimes a little bit longer. But we're very pleased with, the reimbursement that we're seeing come in. We have a couple programs. One, we have our bridge program with the clinical trial patients. And then if needed, if we're seeing, more of an excessive delay on reimbursement or approval of, the start form, then we have what we call quick start. Meredith ManningCCO at Soleno Therapeutics00:19:46And we're looking at providing a twenty eight day prescription. Debjit ChattopadhyaySenior Managing Director at Guggenheim Partners00:19:54Thank you so much. Operator00:19:56Thank you. Next question will be from Kristen Kluska at Cantor. Please go ahead. Kristen KluskaEquity Research Analyst at Cantor Fitzgerald00:20:03Hi, good afternoon, everybody. Let me also add my congrats on a great start here. My two questions. First, can you help us understand some of the ways we should be thinking about coverage decisions on a state by state level and how policies may differ? And then my second question is the International PWS Organization Conference is taking place month, always a huge conference for these patients. Kristen KluskaEquity Research Analyst at Cantor Fitzgerald00:20:29So I was hoping you can give some color about ways that Selena will be present there now that you have an approved therapy to talk about? Anish BhatnagarCEO at Soleno Therapeutics00:20:38Let me take the second part of it, Meredith. You can take the first one then. So we definitely will have a significant presence at this United and Hope Conference. It's the first time the international organization as well as the two U. S.-based organizations are having a combined conference. Anish BhatnagarCEO at Soleno Therapeutics00:20:53It's a large conference and it's going to be very well attended. Our commercial teams, med affairs teams as well as the clinical development teams will be there. We have several presentations and abstracts. So we would like to see you all there. I know many of you are planning to be there as well. Anish BhatnagarCEO at Soleno Therapeutics00:21:13So we're happy to engage and tell you more about what we're doing while we're there. Meredith, do you want to take the first? Meredith ManningCCO at Soleno Therapeutics00:21:18Sure. So talking about state by state, Selena, we've actually, we're participating in the MDRP program, so the Medicaid program, which allows for states to start uploading VICAT XR in the system as of May 1. But I'm sure you know that states vary. Some come on early and decide their policy, within a month or so and others can take up to July, August, or the second half of the year. So we're pleased because we've already seen, several states upload VICAD XR in their system, and we're seeing coverage across various different states. Kristen KluskaEquity Research Analyst at Cantor Fitzgerald00:22:04Thank you. Operator00:22:06Next question will be from Leland Gershell at Oppenheimer. Please go ahead. Leland GershellMD & Senior Biotechnology Analyst at Oppenheimer & Co. Inc.00:22:13Great. Thanks for taking the questions and great to see the early launch numbers. Maybe a question for Meredith, just teeing off your comment about the fact that you're seeing prescriptions coming from docs who may be outside of the initial targeted group of high prescribers. Could you share a bit more color on kind of what you're seeing with respect to docs who may not have been in the 300 or so that you had targeted, kind of what the maybe more community type interest is looking like? And then also wanted to ask with respect to Europe, if you could share, I know maybe a bit early as it'll be time until you approve there, but what credibility looks like in Europe in terms of dispersion of patients and how they're treated? Leland GershellMD & Senior Biotechnology Analyst at Oppenheimer & Co. Inc.00:22:57Does it look kind of like The States in terms of a smaller group of specialists who tend to treat those patients? Or is it a bit different than this in The States? Thank you. Anish BhatnagarCEO at Soleno Therapeutics00:23:08Why don't you take the first one? I'll take the second one. Meredith ManningCCO at Soleno Therapeutics00:23:10Sure. Happy to. So thanks for the question, Leland. We are very encouraged and very pleased by the broad spectrum of writing that we've seen. We definitely anticipated a lot of excitement from the community, whether it be thought leaders, also community treating physicians who see PWS. Meredith ManningCCO at Soleno Therapeutics00:23:33I think what we can attribute that to is the fact that we had a lot of strong prelaunch awareness efforts and an opportunity to partner very closely with many thought leaders as well as advocacy in the community to hold various different types of webinars upon launch. We have a lot of promotional materials and digital assets up and running. So we believe that not only our sales force, but also our omni channel efforts have enabled us to reach a broad spectrum of those physicians including those in the community. Anish BhatnagarCEO at Soleno Therapeutics00:24:11Biren, regarding Europe, in general I would say that the care for PWS in Europe is similar. But I would say that in some cases probably more organized than The U. S. So for example, when you think about a place like France, our understanding based on conversations and visiting some of the centers there is that virtually every individual with PWS there is seen at one of the few centers of excellence. And virtually all of them are tracked by a centralized system. Anish BhatnagarCEO at Soleno Therapeutics00:24:42We believe something similar exists in Germany and we think that the care of those patients is quite similar to here with growth hormone being administered to the ones who are qualified for it and really no other treatments being available. So the environment for the use of a drug like VICAT is quite similar to what you would expect here. Leland GershellMD & Senior Biotechnology Analyst at Oppenheimer & Co. Inc.00:25:04That's very helpful. Thanks very much. Operator00:25:07Thank you. Next question will be from Brian Skorney at Baird. Please go ahead. Brian SkorneySenior Research Analyst at Baird00:25:14Hey, good afternoon, everyone. Thanks for taking the question and congrats on the initial launch metrics. Brian SkorneySenior Research Analyst at Baird00:25:20I hate to put you guys on Brian SkorneySenior Research Analyst at Baird00:25:21the spot and make a direct comparison to another drug launch, but since Dolan Bear is on your board, I can't imagine that this conversation hasn't come up. But at two fifty eight StarForms over a little more than a month, you seem to be pacing Skyclaris almost exactly. They had 500 StarForms a little over two months. Their first quarter sales were almost half of what your full year consensus estimates here are right now. So I'm just wondering, why shouldn't ViCat, given the start form, given sort of a similar reimbursement dynamics, why would it track lower than SkyClaris? Brian SkorneySenior Research Analyst at Baird00:26:03Because that's a much better launch curve than where consensus is currently modeling you at. Anish BhatnagarCEO at Soleno Therapeutics00:26:11Brian, thanks for putting us on the spot. Jim wants to take the question. Jim MackanessCFO at Soleno Therapeutics00:26:15Well, one Jim MackanessCFO at Soleno Therapeutics00:26:16thing I'd comment, Brian, obviously each company has its own dynamics. I would suggest with our weight based pricing, one has to be sensitive to the sort of the weight profile of the patients. And if you remember, we sort of anticipated that we might have a younger set of patients coming through. So that's one variable that we have to consider. Meredith ManningCCO at Soleno Therapeutics00:26:37Yes. And if I may, I would also just mention that I think, Skyclaris had a lot of their commercial team in place for many years prior to launch, and their field team was out, a couple months prior. Remember that we had, half of our sales team come on at the January. And then we most recently brought on the rest of our field team fully trained and they're out as of April 27. So I think if you could give us some time to get our team out there to sell, I'm confident that we'll produce similar as well. Meredith ManningCCO at Soleno Therapeutics00:27:16Additionally, I would also bring your attention to the fact that we had drug in channel by April 14, Skyclaris didn't. So we are also operationalizing and converting start forms into paid patients. Brian SkorneySenior Research Analyst at Baird00:27:31Better than start forms Brian SkorneySenior Research Analyst at Baird00:27:32is what you're Anish BhatnagarCEO at Soleno Therapeutics00:27:35Brian, I think it's also important to note that we are prescription based, as Meredith has mentioned, is 131 physicians already. So we think it's a broad based build, which will sustain us over time. We're not as in the details with Skyclaris, maybe you are, but no direct comparisons to be made. But we certainly feel pretty enthusiastic about what we've seen so far. Brian SkorneySenior Research Analyst at Baird00:28:05Great. Thank you. Operator00:28:08Thank you. Next question will be from James Condulis at Stifel. Please go ahead. James CondulisAssociate Vice President - Biotechnology Equity Research at Stifel Nicolaus00:28:15Thanks for taking my question and congrats again on a great quarter. And kind of following up on that last kind of discussion point, in looking at other rare disease launches, is there a general ballpark on sort of the percentage of patient start forms that actually convert to paid drug? It typically all patients actually convert and it's just a matter of when? Like just curious if you can provide any color there and kind of along those lines, as you think about the cadence of adding start forms throughout next 2Q and beyond, do you expect it to accelerate or hold steady? Just like curious any color you can provide there. James CondulisAssociate Vice President - Biotechnology Equity Research at Stifel Nicolaus00:28:53Thanks. Meredith ManningCCO at Soleno Therapeutics00:28:55Yes, happy to. So I think it's too early to give a percentage, but we definitely are expecting to be comparable to other very strong rare disease launches. We have our internal metrics, but I think it's too early to share what we're looking at. Anish BhatnagarCEO at Soleno Therapeutics00:29:15I think it's also fair to say that the unmet need here is pretty significant. No other treatments are available. So we should expect to be at least comparable to other rare disease launches. James CondulisAssociate Vice President - Biotechnology Equity Research at Stifel Nicolaus00:29:31Great, thank you. Operator00:29:33Thank you. Next question will be from Miriam Belghetti at LifeSci Capital. Please go ahead. Myriam BelghitiEquity Research Analyst at LifeSci Capital, LLC00:29:41Hello. Congrats on the update and thank you for taking my question. A little bit off topic here. I was wondering if you have any comments on how or if the evolving tariff policies are affecting your business operations during the launch? Jim MackanessCFO at Soleno Therapeutics00:29:57Tariff. Yes, we have looked through our supply chain, and I would suggest that really we don't see any significant impact with the way the tariffs are currently being phrased. We do most of our manufacturing in The U. S. So we feel that it's not something that's going to impact us to any great extent. Anish BhatnagarCEO at Soleno Therapeutics00:30:18So the drug substance and drug product vendors are both U. S. Based. We do source some starting materials from outside The U. S. Anish BhatnagarCEO at Soleno Therapeutics00:30:25But as Jim said, no major impact. Myriam BelghitiEquity Research Analyst at LifeSci Capital, LLC00:30:29Okay. Thank you for that clarification. Operator00:30:34Thank you. Next question will be from Yale Jen at Laidlaw. Please go ahead. Yale JenSenior Managing Director & Senior Biotech Analyst at Laidlaw & Company00:30:41Good afternoon, and thanks for taking the question, and congrats on the progression. Just quick two questions here. The first one is that could you give us a little bit color in terms of for new patients, what are what's the sort of steps or procedures to ultimately get the drug prescribed? Are they need to start with the request of the staff form, or do you need to visit the physician to get a prescription, and how does that work? And then I have a quick follow-up. Anish BhatnagarCEO at Soleno Therapeutics00:31:15Yeah, so the best way to think of it is that either the patientcaregiver will reach out to a physician or the physician will reach out to them. They would need to typically see the physician. The physician would need to fill out a start form. The start form would go to the specialty pharmacy and the specialty pharmacy would then take it from there to start the process of providing drug to the patients. Yale JenSenior Managing Director & Senior Biotech Analyst at Laidlaw & Company00:31:43Okay, great. That's very helpful. And maybe one more question. In terms of the European development, I know you guys were talking before whether you want to launch the product by yourself or seeking a partner? Was there anything close to any decision at this point? Yale JenSenior Managing Director & Senior Biotech Analyst at Laidlaw & Company00:32:04And thanks. Anish BhatnagarCEO at Soleno Therapeutics00:32:06So, continue down the path of assessing both options, whether we partner it and there is a fair bit of interest in partnering or we do it ourselves and we are continuing to assess that as well. For us, the key next step has been to get the MAA submission in place with the EMA and that should be happening in this quarter. And the decisions to commercialize and how to do it best will be following that. So we'll certainly keep you posted. Yale JenSenior Managing Director & Senior Biotech Analyst at Laidlaw & Company00:32:35Okay, great. Thanks and congrats again. Operator00:32:39Thank you. Next, we will hear from Ram Selvaraju at H. C. Wainwright. Please go ahead. Jade MontgomeryConsultant Research Analyst at H.C. Wainwright & Co., LLC00:32:55Hi, this is Jade Jade MontgomeryConsultant Research Analyst at H.C. Wainwright & Co., LLC00:32:56on for Ram. Again, congrats on the fantastic launch. So I just wanted to ask a little bit about how you see the competitive landscape right now in Crater Willi hyperphagia. Do you really see there is any noteworthy potential rivals in late stage development? How are you guys thinking about this? Anish BhatnagarCEO at Soleno Therapeutics00:33:21So I would say the late stage rival, the obvious one is ACADIA with Carbitocin which as you know has already been studied in a large phase two as well as a large phase III study. It was submitted to the FDA and got an advisory committee where it was voted down, received a CRL and they are running another study at this time. I would say that is kind of the later stage competitor. It is, as you know, a three times a day nasal product that requires temperature control. The other one, Aardvark, is apparently starting a Phase III study. Anish BhatnagarCEO at Soleno Therapeutics00:33:59The data that is publicly available is short term early data. So it's hard for us to gauge what that will look like in a controlled study. Those are probably the two late stage competitors. Jade MontgomeryConsultant Research Analyst at H.C. Wainwright & Co., LLC00:34:14Great, and how are you seeing the ex US opportunity for this drug shaping up? I know you said about submitting the MMA, but how do you see this doing in Europe? Anish BhatnagarCEO at Soleno Therapeutics00:34:29Yeah, we think the opportunity is very significant. The genetics of Prader Willi syndrome are such that the birth incidence is the same regardless of geography or ethnicity. So you will see the same numbers of patients who have PWS based on population. So if you look at the EU4 plus UK, you're seeing about the same number as The U. S. Anish BhatnagarCEO at Soleno Therapeutics00:34:53In the EU27, it's obviously a proportionately larger number. The unmet need is the same everywhere. So nothing really exists to treat hyperphagia. So we think it's a pretty meaningful market. In terms of rare disease pricing, we see that while Europe is a challenging place for pricing, rare diseases are the one place which appear to be an exception. Anish BhatnagarCEO at Soleno Therapeutics00:35:15So we are pretty enthusiastic about it in Europe as well as in other geographies. Jade MontgomeryConsultant Research Analyst at H.C. Wainwright & Co., LLC00:35:21All right. Thank you so much. Operator00:35:24Thank you. And at this time we have no other questions registered, so I will turn the call back over to Anish. Anish BhatnagarCEO at Soleno Therapeutics00:35:31Well, thank you, everyone, for listening in today, and we'll look forward to talking again for the second quarter call. Operator00:35:38Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we ask that you please disconnect your lines.Read moreParticipantsExecutivesAnish BhatnagarCEOMeredith ManningCCOJim MackanessCFOAnalystsBrian RitchieManaging Director at LifeSci Advisors, LLCYasmeen RahimiSr. Research Analyst at Piper Sandler CompaniesDebjit ChattopadhyaySenior Managing Director at Guggenheim PartnersKristen KluskaEquity Research Analyst at Cantor FitzgeraldLeland GershellMD & Senior Biotechnology Analyst at Oppenheimer & Co. Inc.Brian SkorneySenior Research Analyst at BairdJames CondulisAssociate Vice President - Biotechnology Equity Research at Stifel NicolausMyriam BelghitiEquity Research Analyst at LifeSci Capital, LLCYale JenSenior Managing Director & Senior Biotech Analyst at Laidlaw & CompanyJade MontgomeryConsultant Research Analyst at H.C. Wainwright & Co., LLCPowered by Key Takeaways FDA approval of VICAT XR: On March 26, the FDA approved VICAT XR (formerly DCCR) as the first medicine for treating hyperphagia in people aged four years and older with Prader-Willi syndrome. Commercial launch milestones: Shipments began on April 14 – about a week ahead of forecast – and in the first 29 business days the company received 268 patient start forms and recorded 131 unique prescribers. US market opportunity and access: There are an estimated 10,000 on-label PWS patients in the US, and Celino expects broad commercial and government payer coverage supported by its Selena One patient services model. First-quarter financials: The company used $32.8 million in operating cash, ended Q1 with $290 million in cash and equivalents, and reported R&D expenses of $13.5 million and SG&A of $29.3 million, with sufficient runway to cash-flow breakeven plus a $75 million loan facility. Global expansion plans: A Marketing Authorization Application (MAA) for VICAT XR is planned in H1 2025 for the EU4 and UK, where an estimated 9,500 PWS patients could benefit, and Celino is evaluating both internal commercialization and partnership options. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallSoleno Therapeutics Q1 202500:00 / 00:00Speed:1x1.25x1.5x2xTranscript SectionsPresentationParticipants Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) Soleno Therapeutics Earnings HeadlinesSoleno Therapeutics seeking regulatory approval in treatment of PWSMay 24 at 6:06 PM | finance.yahoo.comSoleno Therapeutics, Inc. (SLNO) Secures EMA Validation for PWS Treatment VYKAT XRMay 24 at 5:13 AM | finance.yahoo.comEveryone’s watching Nvidia right now. Here’s why I’m excited.So, unless you’ve been living under a rock, you probably saw the news… Nvidia just signed a $7 BILLION deal with Saudi Arabia to power its new AI empire 🤯 We’re talking about hundreds of thousands of chips, including their latest Grace Blackwell supercomputer.May 25, 2025 | Timothy Sykes (Ad)Soleno Therapeutics, Inc. (SLNO) Secures EMA Validation for PWS Treatment VYKAT XRMay 24 at 5:13 AM | finance.yahoo.comSoleno Therapeutics Announces Submission and EMA Validation of Marketing Authorization Application for Diazoxide Choline Prolonged-Release Tablets for the Treatment of ...May 23 at 9:34 AM | finance.yahoo.comSoleno Therapeutics, Inc. (SLNO) Secures EMA Validation for PWS Treatment VYKAT XRMay 23 at 3:19 AM | insidermonkey.comSee More Soleno Therapeutics Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Soleno Therapeutics? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Soleno Therapeutics and other key companies, straight to your email. Email Address About Soleno TherapeuticsSoleno Therapeutics (NASDAQ:SLNO), a clinical-stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutics for the treatment of rare diseases. Its lead candidate is Diazoxide Choline Extended-Release tablets, a once-daily oral tablet, which is in Phase III clinical trials for the treatment of Prader-Willi Syndrome. The company was formerly known as Capnia, Inc. and changed its name to Soleno Therapeutics, Inc. in May 2017. 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PresentationSkip to Participants Operator00:00:00Greetings, and welcome to the Celeno Therapeutics First Quarter twenty twenty five Earnings Conference Call. At this time, note that all participants are in a listen only mode. A question and answer session will follow the formal presentation. You may press star, one at any time to be placed into the question queue and we ask that you please ask one question and one follow-up, then return to the queue. As a reminder, this conference is being recorded. Operator00:00:36It is now my pleasure to turn the call over to Brian Ritchie of LifeSci Advisors. Please go ahead, Brian. Brian RitchieManaging Director at LifeSci Advisors, LLC00:00:43Thank you, operator. Good afternoon, everyone, and thank you for joining us to discuss Celino Therapeutics' first quarter twenty twenty five financial and operating results. Please note, we'll be making certain forward looking statements today. We refer you to Solano's SEC filings for a discussion of the risks that may cause actual results to differ from the forward looking statements. On the call with me today from Solano are Anish Bhatnagar, Solano's Chairman and Chief Executive Officer Meredith Manning, Solano's Chief Commercial Officer and Jim McInnis, Solano's Chief Financial Officer. Brian RitchieManaging Director at LifeSci Advisors, LLC00:01:24Anish will begin with a review of the company's progress during the first quarter and subsequent period including FDA approval of VICAT XR and commercial launch. Meredith will then review the company's commercial progress to date and Jim will cover the company's financial statements for the first quarter. We will then open the call for questions. With that, I will now turn the call over to Anish. Anish BhatnagarCEO at Soleno Therapeutics00:01:52Thank you, Brian, and thank you everyone for joining us for our very first quarterly results earning call. It's been a momentous couple of months for our company highlighted by our announcement on March 26 that the FDA approved VICAT XR, previously known as Dioxide Choline Extended Release Tablets or DCCR, as the first medicine for the treatment of hyperphagia in people four years of age and older with Prader Willi syndrome or PWS. This approval is the culmination of many years of tireless work by the entire Celeno team without whom none of this would have been possible. I would also like to recognize the significant contributions of the entire PWS community, including study participants and their families, the study investigators and study site team members, as well as the major PWS advocacy organizations, the Foundation for Productivity Research and the PWSA USA and The UK. We are very pleased to offer VICAT XR for individuals and families who have been waiting for a treatment option for the symptoms related to this devastating disease since it was first recognized in 1956. Anish BhatnagarCEO at Soleno Therapeutics00:03:03Following approval and reflecting our progress in establishing our commercial readiness, we were able to move very quickly to launch. We announced on April 14 that the first patients had received and are currently being treated with VICAT XR and this was about a week ahead of our internal forecast. Meredith will provide some additional color on the initial launch in a moment. For those who may be new to the story, I would like to briefly remind you of the key characteristics of PWS and discuss the impact that hyperphagia can have on the lives of people with PWS, their caregivers, their families and the healthcare professionals who treat them. PWS is a rare genetic disease. Anish BhatnagarCEO at Soleno Therapeutics00:03:46It occurs spontaneously in about one in fifteen thousand to one in twenty five thousand live births due to the deletion or lack of expression of a certain set of genes in chromosome 15. This translates to approximately three hundred to four hundred thousand individuals living with PWS around the world. By the age of around seven or eight years, although sometimes as early as four, individuals with PWS typically will begin to exhibit the hallmark characteristic of the disease, hyperphagia, which is an insatiable desire to eat. This is essentially your brain telling you that you're starving despite having eaten. The only thing families and caregivers have been able to do to try control hyperphagia is restrict access to food such as locking refrigerators, trash cans and pantries. Anish BhatnagarCEO at Soleno Therapeutics00:04:35Constant food preoccupation contributes to significant behavioral problems that can substantially disrupt daily life for those living with PWS and their families. Caregiver burden increases after the onset of hyperphagia and in fact has been measured to be higher than the burden experienced by caregivers for patients with Alzheimer's. So hyperphagia is a truly terrible condition for which no approved treatments have existed until the approval and launch of VICAT XR. Recapping our label, the indication is for treatment of hyperphagia in adults and pediatric patients four years of age and older with PWS. We believe that our label reflects VICAT XR's favorable safety and tolerability profile, contains no box warning, no contraindication for diabetes, no exclusions for severity of hyperphagia, or no requirement for a risk evaluation and mitigation strategy or REMS program. Anish BhatnagarCEO at Soleno Therapeutics00:05:29VICAT XR is to be taken orally once daily. Dosing is weight based. There is a titration period of about six weeks after which all people taking VICAT XR should be on or close to their maintenance dose. The label has clear directions on how physicians should modify the dose if needed to address any side effects and minimize interruptions. The commercial opportunity for VICAT XR as a first to market therapy is significant. Anish BhatnagarCEO at Soleno Therapeutics00:05:58We have used existing claims data to confidently identify approximately twelve thousand individuals diagnosed with PWS in The United States, of which approximately ten thousand should represent our total on label addressable market. This excludes those individuals with PWS who are younger than four years old, others who may not be experiencing hyperphagia or who may have comorbidities that make them ineligible for VICAT XR. As mentioned, as soon as we received FDA approval, we were prepared to begin accepting VICAT XR start forms immediately and patient treatments commenced in mid April. This is a testament to the efforts of Meredith Manning, our CCO, and our world class commercial team whose prelaunch efforts to patients, physicians and payers set the stage for a strong and successful launch and to all of our employees who have worked so hard to prepare the company for this day. I will now turn the presentation over to Meredith to discuss the early days of the launch and a few performance indicators that we plan to provide for the next several quarters to assist you in tracking our progress. Anish BhatnagarCEO at Soleno Therapeutics00:07:04Meredith? Meredith ManningCCO at Soleno Therapeutics00:07:05Thank you, Anish, and good afternoon, everyone. As Anish indicated, the launch readiness activities that we have been diligently executing for the past several months has ensured that we are well positioned to deliver this much needed treatment to patients as quickly as possible. We previously discussed three pillars of activity that we view as crucial to a successful launch. First, to establish VICAT XR as the standard of care in hyperphagia in PWS. Second, to deliver operational excellence. Meredith ManningCCO at Soleno Therapeutics00:07:42And finally, to communicate the compelling VICAT XR value proposition. And while it is still very early in the launch cycle of a new therapy, I am nonetheless very pleased with our launch efforts to date. We are seeing awareness on the part of people living with PWS and their caregivers, a willingness to prescribe on the part of treating physicians, and a recognition of the unmet need on the part of payers. We outlined several performance indicators we plan to provide over the next several quarters to help track our progress. The first of these is patient start forms. Meredith ManningCCO at Soleno Therapeutics00:08:23As of the end of day yesterday, we have received two sixty eight start forms and that's in twenty nine business days since approval. And while it's early, it is very encouraging. We look forward to future quarterly updates when we will have an opportunity to collect more data and identify trends that are emerging. On April 14, we announced the first shipment of VICAT XR to individuals living with hyperphagia in PWS. Since then, many patients have received their first dose of VICAT XR and have started treatment. Meredith ManningCCO at Soleno Therapeutics00:09:01This reflects our dedication to ensuring timely access to treatment. The second performance indicator that we will be providing is the number of prescribers, which is 131 unique prescribers as of yesterday. Our field force is prioritizing engagement with top tier providers with high patient volumes, which includes pediatric and adult endocrinologists, geneticists, and psychiatrists. We have also been impressed with the adoption of VICAT XR from a broad base of prescribers, including those practicing in the community. This expanded reach indicates that our efforts to drive awareness of VICAT XR availability, to communicate the efficacy and safety profile and the need for a therapy across a broad prescribing spectrum is strong. Meredith ManningCCO at Soleno Therapeutics00:09:55Finally, in the future, we will be covering a detailed update on payer coverage. That will be covered live and some color on payer policies, as this is critical to patients initiating and remaining on therapy. We previously talked about our payer outreach, which was mostly focused on emphasizing the complexity of hyperphagia in PWS patients, the consequences of not controlling hyperphagia, and the need for a new therapeutic option. We are very pleased with the feedback we have received from payers as a result of this outreach, and we are confident the VICAT XR value proposition is resonating with commercial and government payers alike. While formal coverage policies can take anywhere from three to six months and sometimes longer to develop and implement, we do expect that VICAT XR will achieve broad payer coverage in The United States. Meredith ManningCCO at Soleno Therapeutics00:10:54We are fully committed to ensuring that VICAT XR is available to all eligible patients and that affordability is not a barrier to treatment. To this end, we have stood up Celena one, our single point of contact for patient services. Selena one was operational day one upon approval and is dedicated to supporting caregivers and healthcare providers in minimizing and mitigating payer access obstacles. I will now turn the call over to Jim for a review of the company's financial statements for the first quarter. Jim MackanessCFO at Soleno Therapeutics00:11:30Thank you, Meredith. We used $32,800,000 of cash in operating activities during the three months ended 03/31/2025 and ended the period with $290,000,000 of cash, cash equivalents and marketable securities compared with $318,600,000 as of 12/31/2024. As we have stated previously, based on our current operating plan, we believe our cash, cash equivalents and marketable securities are sufficient to fund our operations through cash flow breakeven. Furthermore, with the approval of VICAT XR, we now have an additional $75,000,000 available to us in two tranches over the next eighteen months under our loan agreement. Turning now to a few income statement items. Jim MackanessCFO at Soleno Therapeutics00:12:13The company had not commercialized VICAT XR in the three months ended 03/31/2025, and accordingly generated no revenue for the period. Research and development expenses for the first quarter ended 03/31/2025, was $13,500,000 which includes $4,300,000 of non cash stock based compensation. That compares to 14,600,000.0 which includes $2,400,000 of non cash stock based compensation for the same period of 2024. The cadence of our research and development expenditures fluctuate depending upon the state of our clinical programs, timing of manufacturing and other projects as we've moved through submission, approval and now preparation for commercialization. Selling, general and administrative expense for the first quarter ended 03/31/2025 was 29,300,000.0 which includes $10,400,000 of non cash stock based compensation and that compares to $8,500,000 which includes $4,000,000 of non cash stock based compensation for the same period of 2024. Jim MackanessCFO at Soleno Therapeutics00:13:16The increase reflects our ongoing investment in additional personnel and new programs in preparation for commercial launch and in support of our increased business activity. Total other income, net, was CAD2.0 million for the three months ended 03/31/2025, compared to total other income net of CAD2.1 million in the same period of 2024. And our net loss was approximately CAD43.8 million or $0.95 per basic and diluted share for the first quarter ended 03/31/2025 and £21,400,000 or $0.59 per basic and diluted share for the same period in 2024. This concludes the financial overview, and I'll now turn the call back over to Anish for closing remarks. Anish? Anish BhatnagarCEO at Soleno Therapeutics00:14:02Thank you, Jim. While we are very pleased with what we are seeing in the early days of our U. S. Commercial launch, PWS is a global disease that impacts hundreds of thousands of patients around the world. In an effort to make VICAT XR available to as many of these patients as possible, in parallel with our U. Anish BhatnagarCEO at Soleno Therapeutics00:14:21S. Commercial launch, we continue to progress around regulatory pathways in other geographies, the most important of which is The EU. We have stated previously that Europe also has a high unmet need among other patients with PWS. And as with The U. S, the PWS community has strong thought leader support and patients are often concentrated around centers of excellence. Anish BhatnagarCEO at Soleno Therapeutics00:14:43Based on widely cited prevalence data, we estimate that there are as many as nine thousand five hundred patients with PWS in The EU4 and The UK. As we have stated previously, the submission of an MAA to the EMA is planned for the first half of this year. Before we open the call for questions, I want to close by reiterating how pleased we are with the early response we are seeing from the PWS community to the availability of VICAT XR in The U. S. With that said, however, I remind everyone that start forms are a leading indicator and there is a lag between receiving a start form and our specialty pharmacy partner purchasing product from us, which is when we record revenue. Anish BhatnagarCEO at Soleno Therapeutics00:15:23Therefore, as is typical in these types of launches, we expect revenues to start up modestly. It will take time to execute a full commercial launch, which includes patients scheduling visits with their healthcare providers, payers determining coverage policies and the sales team being fully oriented to their territories. I look forward to sharing more details on our launch trajectory during our second quarter results call in August. And with that, we will now open the call to your questions. Operator? Operator00:15:50Thank you, please press followed by 2. And if you are using a speakerphone, please lift the handset first before pressing any keys. Please go ahead and press 1 now if you do have any questions. First question will be from Yasmeen Rahimi at Piper Sandler. Please go ahead. Yasmeen RahimiSr. Research Analyst at Piper Sandler Companies00:16:22Good afternoon, team. Congrats on an outstanding quarter. Two questions. The first one is just could you quantify how soon we could start converting the starting forms into revenue? Second question is what do you project the time to fill to be at this point and how it will change over the course of 2025? Yasmeen RahimiSr. Research Analyst at Piper Sandler Companies00:16:45And I respect your wishes of two questions, and I'll jump back into the queue. Anish BhatnagarCEO at Soleno Therapeutics00:16:51Jim, you want to take the first question? Jim MackanessCFO at Soleno Therapeutics00:16:53Yes, sure. Yes, so, obviously, there's a Jim MackanessCFO at Soleno Therapeutics00:16:56number of steps that have to go through to get start form into the hands of the specialty pharmacy and qualify if you like for commercial drug, because you're talking about the commercial drug. And then they in turn have to turn around and obviously place the order. And we anticipate that they will be cautious if you like in the inventory build that they want to take. So that's why we're just being mindful and say we think modest revenues for Q2. Anish BhatnagarCEO at Soleno Therapeutics00:17:20Do want to Anish BhatnagarCEO at Soleno Therapeutics00:17:20take the second one, Matthew? Meredith ManningCCO at Soleno Therapeutics00:17:21Sure. Thank you. Thank you for the question. We're very happy with the speed in which we're able to convert the current start forms over to ship product. You know, it's too soon right now. Meredith ManningCCO at Soleno Therapeutics00:17:35We're only twenty nine days in to give specific details on the turnaround time, but we're seeing what's you know, ordinary with other rare disease launches, and we'll look forward to giving more information on the next call. Yasmeen RahimiSr. Research Analyst at Piper Sandler Companies00:17:49Thank you, Meredith, and thank you, Jim and Anish. Operator00:17:53Thank you. Next question will be from Debjit Chattopadhyay at Guggenheim Securities. Please go ahead. Debjit ChattopadhyaySenior Managing Director at Guggenheim Partners00:18:02Hey, good afternoon. Thanks for taking my question and congrats. I have a couple. If I remember correctly, about one hundred and twenty seven patients were enrolled in Debjit ChattopadhyaySenior Managing Director at Guggenheim Partners00:18:14the Phase III program. What percentage of those patients are reflected in the current stock forms? Anish BhatnagarCEO at Soleno Therapeutics00:18:22Meredith, do you want to take that? Meredith ManningCCO at Soleno Therapeutics00:18:24Yeah, happy to take that. So as you'll recall in the randomized withdrawal period, we had a total of seventy seven patients. Sixty of those patients are here in The United States. And so the majority of those patients we've received their start form and we're looking at converting them over. So, we're very pleased with how fast our clinical operations team is executing on converting those patients. Debjit ChattopadhyaySenior Managing Director at Guggenheim Partners00:18:51Awesome. And in terms of the free drug that patients are receiving right now, how should we think about it? How many days of free drug before they reimburse therapy? Meredith ManningCCO at Soleno Therapeutics00:19:05Yeah, so I'll just remind everybody that we're really early in the launch and it takes easily six months for many payers to arrive at a full coverage policy, sometimes a little bit longer. But we're very pleased with, the reimbursement that we're seeing come in. We have a couple programs. One, we have our bridge program with the clinical trial patients. And then if needed, if we're seeing, more of an excessive delay on reimbursement or approval of, the start form, then we have what we call quick start. Meredith ManningCCO at Soleno Therapeutics00:19:46And we're looking at providing a twenty eight day prescription. Debjit ChattopadhyaySenior Managing Director at Guggenheim Partners00:19:54Thank you so much. Operator00:19:56Thank you. Next question will be from Kristen Kluska at Cantor. Please go ahead. Kristen KluskaEquity Research Analyst at Cantor Fitzgerald00:20:03Hi, good afternoon, everybody. Let me also add my congrats on a great start here. My two questions. First, can you help us understand some of the ways we should be thinking about coverage decisions on a state by state level and how policies may differ? And then my second question is the International PWS Organization Conference is taking place month, always a huge conference for these patients. Kristen KluskaEquity Research Analyst at Cantor Fitzgerald00:20:29So I was hoping you can give some color about ways that Selena will be present there now that you have an approved therapy to talk about? Anish BhatnagarCEO at Soleno Therapeutics00:20:38Let me take the second part of it, Meredith. You can take the first one then. So we definitely will have a significant presence at this United and Hope Conference. It's the first time the international organization as well as the two U. S.-based organizations are having a combined conference. Anish BhatnagarCEO at Soleno Therapeutics00:20:53It's a large conference and it's going to be very well attended. Our commercial teams, med affairs teams as well as the clinical development teams will be there. We have several presentations and abstracts. So we would like to see you all there. I know many of you are planning to be there as well. Anish BhatnagarCEO at Soleno Therapeutics00:21:13So we're happy to engage and tell you more about what we're doing while we're there. Meredith, do you want to take the first? Meredith ManningCCO at Soleno Therapeutics00:21:18Sure. So talking about state by state, Selena, we've actually, we're participating in the MDRP program, so the Medicaid program, which allows for states to start uploading VICAT XR in the system as of May 1. But I'm sure you know that states vary. Some come on early and decide their policy, within a month or so and others can take up to July, August, or the second half of the year. So we're pleased because we've already seen, several states upload VICAD XR in their system, and we're seeing coverage across various different states. Kristen KluskaEquity Research Analyst at Cantor Fitzgerald00:22:04Thank you. Operator00:22:06Next question will be from Leland Gershell at Oppenheimer. Please go ahead. Leland GershellMD & Senior Biotechnology Analyst at Oppenheimer & Co. Inc.00:22:13Great. Thanks for taking the questions and great to see the early launch numbers. Maybe a question for Meredith, just teeing off your comment about the fact that you're seeing prescriptions coming from docs who may be outside of the initial targeted group of high prescribers. Could you share a bit more color on kind of what you're seeing with respect to docs who may not have been in the 300 or so that you had targeted, kind of what the maybe more community type interest is looking like? And then also wanted to ask with respect to Europe, if you could share, I know maybe a bit early as it'll be time until you approve there, but what credibility looks like in Europe in terms of dispersion of patients and how they're treated? Leland GershellMD & Senior Biotechnology Analyst at Oppenheimer & Co. Inc.00:22:57Does it look kind of like The States in terms of a smaller group of specialists who tend to treat those patients? Or is it a bit different than this in The States? Thank you. Anish BhatnagarCEO at Soleno Therapeutics00:23:08Why don't you take the first one? I'll take the second one. Meredith ManningCCO at Soleno Therapeutics00:23:10Sure. Happy to. So thanks for the question, Leland. We are very encouraged and very pleased by the broad spectrum of writing that we've seen. We definitely anticipated a lot of excitement from the community, whether it be thought leaders, also community treating physicians who see PWS. Meredith ManningCCO at Soleno Therapeutics00:23:33I think what we can attribute that to is the fact that we had a lot of strong prelaunch awareness efforts and an opportunity to partner very closely with many thought leaders as well as advocacy in the community to hold various different types of webinars upon launch. We have a lot of promotional materials and digital assets up and running. So we believe that not only our sales force, but also our omni channel efforts have enabled us to reach a broad spectrum of those physicians including those in the community. Anish BhatnagarCEO at Soleno Therapeutics00:24:11Biren, regarding Europe, in general I would say that the care for PWS in Europe is similar. But I would say that in some cases probably more organized than The U. S. So for example, when you think about a place like France, our understanding based on conversations and visiting some of the centers there is that virtually every individual with PWS there is seen at one of the few centers of excellence. And virtually all of them are tracked by a centralized system. Anish BhatnagarCEO at Soleno Therapeutics00:24:42We believe something similar exists in Germany and we think that the care of those patients is quite similar to here with growth hormone being administered to the ones who are qualified for it and really no other treatments being available. So the environment for the use of a drug like VICAT is quite similar to what you would expect here. Leland GershellMD & Senior Biotechnology Analyst at Oppenheimer & Co. Inc.00:25:04That's very helpful. Thanks very much. Operator00:25:07Thank you. Next question will be from Brian Skorney at Baird. Please go ahead. Brian SkorneySenior Research Analyst at Baird00:25:14Hey, good afternoon, everyone. Thanks for taking the question and congrats on the initial launch metrics. Brian SkorneySenior Research Analyst at Baird00:25:20I hate to put you guys on Brian SkorneySenior Research Analyst at Baird00:25:21the spot and make a direct comparison to another drug launch, but since Dolan Bear is on your board, I can't imagine that this conversation hasn't come up. But at two fifty eight StarForms over a little more than a month, you seem to be pacing Skyclaris almost exactly. They had 500 StarForms a little over two months. Their first quarter sales were almost half of what your full year consensus estimates here are right now. So I'm just wondering, why shouldn't ViCat, given the start form, given sort of a similar reimbursement dynamics, why would it track lower than SkyClaris? Brian SkorneySenior Research Analyst at Baird00:26:03Because that's a much better launch curve than where consensus is currently modeling you at. Anish BhatnagarCEO at Soleno Therapeutics00:26:11Brian, thanks for putting us on the spot. Jim wants to take the question. Jim MackanessCFO at Soleno Therapeutics00:26:15Well, one Jim MackanessCFO at Soleno Therapeutics00:26:16thing I'd comment, Brian, obviously each company has its own dynamics. I would suggest with our weight based pricing, one has to be sensitive to the sort of the weight profile of the patients. And if you remember, we sort of anticipated that we might have a younger set of patients coming through. So that's one variable that we have to consider. Meredith ManningCCO at Soleno Therapeutics00:26:37Yes. And if I may, I would also just mention that I think, Skyclaris had a lot of their commercial team in place for many years prior to launch, and their field team was out, a couple months prior. Remember that we had, half of our sales team come on at the January. And then we most recently brought on the rest of our field team fully trained and they're out as of April 27. So I think if you could give us some time to get our team out there to sell, I'm confident that we'll produce similar as well. Meredith ManningCCO at Soleno Therapeutics00:27:16Additionally, I would also bring your attention to the fact that we had drug in channel by April 14, Skyclaris didn't. So we are also operationalizing and converting start forms into paid patients. Brian SkorneySenior Research Analyst at Baird00:27:31Better than start forms Brian SkorneySenior Research Analyst at Baird00:27:32is what you're Anish BhatnagarCEO at Soleno Therapeutics00:27:35Brian, I think it's also important to note that we are prescription based, as Meredith has mentioned, is 131 physicians already. So we think it's a broad based build, which will sustain us over time. We're not as in the details with Skyclaris, maybe you are, but no direct comparisons to be made. But we certainly feel pretty enthusiastic about what we've seen so far. Brian SkorneySenior Research Analyst at Baird00:28:05Great. Thank you. Operator00:28:08Thank you. Next question will be from James Condulis at Stifel. Please go ahead. James CondulisAssociate Vice President - Biotechnology Equity Research at Stifel Nicolaus00:28:15Thanks for taking my question and congrats again on a great quarter. And kind of following up on that last kind of discussion point, in looking at other rare disease launches, is there a general ballpark on sort of the percentage of patient start forms that actually convert to paid drug? It typically all patients actually convert and it's just a matter of when? Like just curious if you can provide any color there and kind of along those lines, as you think about the cadence of adding start forms throughout next 2Q and beyond, do you expect it to accelerate or hold steady? Just like curious any color you can provide there. James CondulisAssociate Vice President - Biotechnology Equity Research at Stifel Nicolaus00:28:53Thanks. Meredith ManningCCO at Soleno Therapeutics00:28:55Yes, happy to. So I think it's too early to give a percentage, but we definitely are expecting to be comparable to other very strong rare disease launches. We have our internal metrics, but I think it's too early to share what we're looking at. Anish BhatnagarCEO at Soleno Therapeutics00:29:15I think it's also fair to say that the unmet need here is pretty significant. No other treatments are available. So we should expect to be at least comparable to other rare disease launches. James CondulisAssociate Vice President - Biotechnology Equity Research at Stifel Nicolaus00:29:31Great, thank you. Operator00:29:33Thank you. Next question will be from Miriam Belghetti at LifeSci Capital. Please go ahead. Myriam BelghitiEquity Research Analyst at LifeSci Capital, LLC00:29:41Hello. Congrats on the update and thank you for taking my question. A little bit off topic here. I was wondering if you have any comments on how or if the evolving tariff policies are affecting your business operations during the launch? Jim MackanessCFO at Soleno Therapeutics00:29:57Tariff. Yes, we have looked through our supply chain, and I would suggest that really we don't see any significant impact with the way the tariffs are currently being phrased. We do most of our manufacturing in The U. S. So we feel that it's not something that's going to impact us to any great extent. Anish BhatnagarCEO at Soleno Therapeutics00:30:18So the drug substance and drug product vendors are both U. S. Based. We do source some starting materials from outside The U. S. Anish BhatnagarCEO at Soleno Therapeutics00:30:25But as Jim said, no major impact. Myriam BelghitiEquity Research Analyst at LifeSci Capital, LLC00:30:29Okay. Thank you for that clarification. Operator00:30:34Thank you. Next question will be from Yale Jen at Laidlaw. Please go ahead. Yale JenSenior Managing Director & Senior Biotech Analyst at Laidlaw & Company00:30:41Good afternoon, and thanks for taking the question, and congrats on the progression. Just quick two questions here. The first one is that could you give us a little bit color in terms of for new patients, what are what's the sort of steps or procedures to ultimately get the drug prescribed? Are they need to start with the request of the staff form, or do you need to visit the physician to get a prescription, and how does that work? And then I have a quick follow-up. Anish BhatnagarCEO at Soleno Therapeutics00:31:15Yeah, so the best way to think of it is that either the patientcaregiver will reach out to a physician or the physician will reach out to them. They would need to typically see the physician. The physician would need to fill out a start form. The start form would go to the specialty pharmacy and the specialty pharmacy would then take it from there to start the process of providing drug to the patients. Yale JenSenior Managing Director & Senior Biotech Analyst at Laidlaw & Company00:31:43Okay, great. That's very helpful. And maybe one more question. In terms of the European development, I know you guys were talking before whether you want to launch the product by yourself or seeking a partner? Was there anything close to any decision at this point? Yale JenSenior Managing Director & Senior Biotech Analyst at Laidlaw & Company00:32:04And thanks. Anish BhatnagarCEO at Soleno Therapeutics00:32:06So, continue down the path of assessing both options, whether we partner it and there is a fair bit of interest in partnering or we do it ourselves and we are continuing to assess that as well. For us, the key next step has been to get the MAA submission in place with the EMA and that should be happening in this quarter. And the decisions to commercialize and how to do it best will be following that. So we'll certainly keep you posted. Yale JenSenior Managing Director & Senior Biotech Analyst at Laidlaw & Company00:32:35Okay, great. Thanks and congrats again. Operator00:32:39Thank you. Next, we will hear from Ram Selvaraju at H. C. Wainwright. Please go ahead. Jade MontgomeryConsultant Research Analyst at H.C. Wainwright & Co., LLC00:32:55Hi, this is Jade Jade MontgomeryConsultant Research Analyst at H.C. Wainwright & Co., LLC00:32:56on for Ram. Again, congrats on the fantastic launch. So I just wanted to ask a little bit about how you see the competitive landscape right now in Crater Willi hyperphagia. Do you really see there is any noteworthy potential rivals in late stage development? How are you guys thinking about this? Anish BhatnagarCEO at Soleno Therapeutics00:33:21So I would say the late stage rival, the obvious one is ACADIA with Carbitocin which as you know has already been studied in a large phase two as well as a large phase III study. It was submitted to the FDA and got an advisory committee where it was voted down, received a CRL and they are running another study at this time. I would say that is kind of the later stage competitor. It is, as you know, a three times a day nasal product that requires temperature control. The other one, Aardvark, is apparently starting a Phase III study. Anish BhatnagarCEO at Soleno Therapeutics00:33:59The data that is publicly available is short term early data. So it's hard for us to gauge what that will look like in a controlled study. Those are probably the two late stage competitors. Jade MontgomeryConsultant Research Analyst at H.C. Wainwright & Co., LLC00:34:14Great, and how are you seeing the ex US opportunity for this drug shaping up? I know you said about submitting the MMA, but how do you see this doing in Europe? Anish BhatnagarCEO at Soleno Therapeutics00:34:29Yeah, we think the opportunity is very significant. The genetics of Prader Willi syndrome are such that the birth incidence is the same regardless of geography or ethnicity. So you will see the same numbers of patients who have PWS based on population. So if you look at the EU4 plus UK, you're seeing about the same number as The U. S. Anish BhatnagarCEO at Soleno Therapeutics00:34:53In the EU27, it's obviously a proportionately larger number. The unmet need is the same everywhere. So nothing really exists to treat hyperphagia. So we think it's a pretty meaningful market. In terms of rare disease pricing, we see that while Europe is a challenging place for pricing, rare diseases are the one place which appear to be an exception. Anish BhatnagarCEO at Soleno Therapeutics00:35:15So we are pretty enthusiastic about it in Europe as well as in other geographies. Jade MontgomeryConsultant Research Analyst at H.C. Wainwright & Co., LLC00:35:21All right. Thank you so much. Operator00:35:24Thank you. And at this time we have no other questions registered, so I will turn the call back over to Anish. Anish BhatnagarCEO at Soleno Therapeutics00:35:31Well, thank you, everyone, for listening in today, and we'll look forward to talking again for the second quarter call. Operator00:35:38Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we ask that you please disconnect your lines.Read moreParticipantsExecutivesAnish BhatnagarCEOMeredith ManningCCOJim MackanessCFOAnalystsBrian RitchieManaging Director at LifeSci Advisors, LLCYasmeen RahimiSr. Research Analyst at Piper Sandler CompaniesDebjit ChattopadhyaySenior Managing Director at Guggenheim PartnersKristen KluskaEquity Research Analyst at Cantor FitzgeraldLeland GershellMD & Senior Biotechnology Analyst at Oppenheimer & Co. Inc.Brian SkorneySenior Research Analyst at BairdJames CondulisAssociate Vice President - Biotechnology Equity Research at Stifel NicolausMyriam BelghitiEquity Research Analyst at LifeSci Capital, LLCYale JenSenior Managing Director & Senior Biotech Analyst at Laidlaw & CompanyJade MontgomeryConsultant Research Analyst at H.C. Wainwright & Co., LLCPowered by