What factors could impact SLNO's future EPS growth?

Soleno Therapeutics' (SLNO) future EPS growth is likely to be influenced by several key factors: 1. **FDA Approval of VYKAT XR**: The recent FDA approval of VYKAT XR for hyperphagia in Prader-Willi syndrome (PWS) is a significant milestone. This approval addresses a critical unmet need and positions Soleno as the only approved therapy for this indication. The broad patient coverage and lack of therapeutic competition suggest a strong market potential, which could positively impact revenue and EPS growth. 2. **Pricing and Revenue Potential**: The company's pricing strategy for VYKAT XR, with an annual Wholesale Acquisition Cost (WAC) of approximately $466,200, exceeds industry analysts' expectations. This suggests a strong revenue potential, which could contribute to EPS growth as the drug is launched and gains market traction. 3. **Commercialization and Sales Force Expansion**: Soleno's plans to deploy a sales team of 30 representatives to support the launch of VYKAT XR indicate a strategic focus on commercialization. A strong sales force is crucial for driving revenue growth and can positively impact EPS as the company moves from clinical to commercial stages. 4. **Market Acceptance and Demand**: The demand for VYKAT XR is expected to be strong due to the unmet need in managing hyperphagia in PWS patients. Positive physician and patient awareness, along with a favorable risk/benefit profile, could drive market acceptance and revenue growth. 5. **Financial Health and Liquidity**: Soleno's financial health, with a current ratio of 15.68, suggests a strong liquidity position. Adequate financial resources are essential for supporting ongoing research and development, potential future acquisitions, and sustaining operations as the company scales up. 6. **Regulatory and Development Risks**: As a clinical-stage company, Soleno faces significant risks related to regulatory approval and development milestones. Delays or setbacks in these areas could negatively impact revenue and EPS growth. 7. **Revenue from Product Sales**: Soleno continues to incur significant losses with no revenue from product sales, which is a concern for sustainability. The successful commercialization of VYKAT XR and potential future products will be crucial for turning revenue and, consequently, EPS growth positive. 8. **International Market Expansion**: Soleno's expansion into international markets could open new opportunities but also introduces complex challenges. Successful entry into new markets could increase revenue and EPS growth, but it also carries risks related to regulatory compliance and market dynamics. In summary, SLNO's future EPS growth is likely to be driven by the successful commercialization of VYKAT XR, strategic pricing, and the company's ability to navigate regulatory challenges and maintain financial health.