Soleno Therapeutics rises after rival's rare disease drug fails late-stage study

Shares of drugmaker Soleno Therapeutics SLNO.O rise 12.7% to $64.07

Rival Acadia Pharmaceuticals ACAD.O says it will discontinue development of its intranasal therapy to treat rare genetic condition after it failed to show benefit in patients in late-stage trial

ACAD shares were down 10.6% at $21.11

SLNO has the only U.S. FDA-approved treatment for condition called Vykat XR to treat hyperphagia, or feelings of intense and persistent hunger, in patients with genetic disorder Prader-Willi syndrome

Cantor Fitzgerald analysts view ACAD's results as major overhang lifted for SLNO, "as investors had pointed to this program as a potential competitor for Vykat XR"

"This means that SLNO's Vykat XR is the only game in town for PWS hyperphagia...thus, as we remain confident on continued strong Vykat XR launch," Piper Sandler says

SLNO shares have been under pressure after death of 17-year-old male who was on co's treatment and short seller Scorpion Capital disclosing short position

Impressive Q3 results, coupled with signals that several patients are doing well and tolerating drug, could lead to stock trading back to high double digits, Cantor Fitzgerald says

Including session's move, SLNO up 37% YTD