10 Most Promising Small-Cap Stocks According to Hedge Funds

8. Soleno Therapeutics, Inc. (NASDAQ:SLNO)

Number of Hedge Fund Holders: 29

Market Capitalization as of October 10, 2024: $1.99 Billion

Soleno Therapeutics, Inc. (NASDAQ:SLNO) is a specialty biotechnology company that ranks eighth on our list of the most promising small-cap stocks according to hedge funds. The company is currently developing Diazoxide Choline Extended-Release (DCCR), a tablet that treats Prader-Willi Syndrome (PWS), a genetic disorder.

The drug has already completed its phase 3 trials and is currently being evaluated in a phase 3 clinical development program. As for PWS, the five major concerns for Soleno Therapeutics, Inc. (NASDAQ:SLNO) include reducing hunger, improving behavior around food, enhancing metabolic health, reducing temper, and reducing OCD. The tablet also has the potential to treat other diseases such as obesity-associated mutations and life-threatening hypoglycemia.

In the second quarter of 2024, Soleno Therapeutics, Inc. (NASDAQ:SLNO) submitted a New Drug Application to the U.S. Food and Drug Administration (FDA) for the usage of DCCR as a treatment of PWS. During the same quarter, the company achieved a significant milestone after it was granted the “Breakthrough Therapy” designation for DCCR as a treatment for patients with genetically confirmed PWS and hyperphagia.

In Q2 2024, the company spent $12.3 million on research and development, compared to $5.1 million in the same quarter in 2023. Soleno Therapeutics, Inc. (NASDAQ:SLNO) is accelerating its communications with the FDA and is also working to improve supply chain activities. Overall, the company is positioned for solid growth in the coming years.