LIVE MARKETS-Prader-Willi drug sparks Wall Street interest in multi-billion dollar market, Leerink says

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PRADER-WILLI DRUG SPARKS WALL STREET INTEREST IN MULTI-BILLION DOLLAR MARKET, LEERINK SAYS

Wall Street's interest in developing novel drugs to treat symptoms of a rare genetic disorder called Prader-Willi syndrome is growing, and upcoming treatments could create a multi-billion dollar market, analysts at Leerink Partners said.

The interest follows the U.S. health regulator's nod for the first therapy for patients, Soleno Therapeutics' SLNO.O Vykat XR, which was launched in April.

"There is high unmet need for the about 10,000+ patients in the US with this disease. Soleno is pioneering building out this market with Vykat, and we expect this is just the start," Leerink analysts said in a note.

PWS affects one in 20,000-30,000 births and about 400,000 individuals worldwide, the brokerage estimates.

Vykat XR treats hyperphagia, the hallmark symptom of the condition that causes a feeling of insatiable hunger persisting even after meals. Soleno expects sales of the drug to be between $31 million and $33 million for the second quarter.

"With the strong Vykat pricing and launch, it’s easy to get interested in the PWS market opportunity," Leerink analysts said.

Acadia Pharmaceuticals ACAD.O, Rhythm Pharmaceuticals RYTM.O and Aardvark Therapeutics AARD.O are among other companies that have drugs with a different mechanism of action, in late and mid-stage studies for the disease.

Data from Acadia's late-stage study is expected in the fourth-quarter of this year while data from Rhythm's mid-stage study is expected in the second-half of this year.

Soleno's drug is a once-daily oral pill that targets a specific pathway in the brain that decreases secretion of a peptide known to regulate appetite, while Acadia's ACP-101 is an intranasal formulation which targets the hunger-regulating oxytocin receptors.

Analysts at Leerink estimate $500 million in peak sales for Acadia's drug if it gets approved. Data from LSEG estimates $413.97 million in sales by 2027 for Soleno's Vykat XR.

(Sneha S K)

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