Royce & Associates Trims Stake in Soleno Therapeutics

Institutional investor reduces holdings in biotech firm focused on rare diseases

Published on Mar. 6, 2026

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Royce & Associates LP, an investment management firm, lowered its stake in Soleno Therapeutics, Inc. (NASDAQ:SLNO) by 69.2% during the third quarter of 2025. The firm previously owned 30,987 shares of the biopharmaceutical company, which is developing a treatment for Prader-Willi syndrome, a rare genetic disorder.

Why it matters

Soleno Therapeutics is a clinical-stage biotech company focused on developing therapies for rare and orphan diseases. The reduction in Royce & Associates' stake could signal a shift in investor sentiment around the company and its lead drug candidate, diazoxide choline controlled release (DCCR), which is being investigated for the treatment of Prader-Willi syndrome.

The details

According to a filing with the Securities and Exchange Commission, Royce & Associates sold 69,711 shares of Soleno Therapeutics during the third quarter, leaving the firm with 30,987 shares. Royce & Associates previously owned approximately 0.06% of Soleno Therapeutics. The sale comes as Soleno Therapeutics continues to advance DCCR through clinical trials for the treatment of Prader-Willi syndrome, a complex genetic disorder characterized by insatiable appetite, hormonal imbalances, and behavioral challenges.

  • Royce & Associates lowered its stake in Soleno Therapeutics during the third quarter of 2025.

The players

Royce & Associates LP

An investment management firm that previously held a stake in Soleno Therapeutics.

Soleno Therapeutics, Inc.

A clinical-stage biopharmaceutical company focused on developing therapies for rare and orphan diseases, including Prader-Willi syndrome.

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The takeaway

The reduction in Royce & Associates' stake in Soleno Therapeutics could signal a shift in investor sentiment around the company and its lead drug candidate, DCCR, which is being developed for the treatment of Prader-Willi syndrome. However, Soleno Therapeutics continues to advance its pipeline and remains focused on addressing the unmet needs of patients with rare and orphan diseases.