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