12 Cheap Biotech Stocks to Buy Now

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

Soleno Therapeutics, Inc. (NASDAQ:SLNO) is one of the best cheap biotech stocks to buy now. Wells Fargo cut the price target on Soleno Therapeutics, Inc. (NASDAQ:SLNO) to $110 from $114 on February 27, reaffirming an Overweight rating on the shares and stating that while some investors’ near-term takeout thesis may be removed by the management’s commentary on building out a pipeline plus LCM for Vykat XR and the CFO’s retirement, shares remain cheap relative to expected FY26 revenue and cash flow, and the firm is a buyer at these levels.

TD Cowen also lowered the price target on Soleno Therapeutics, Inc. (NASDAQ:SLNO) to $85 from $120 on February 26 and maintained a Buy rating on the shares. The firm told investors that the company delivered a strong Q4 of Vykat XR sales and finished 2025 profitably. It added that management reaffirmed a strong commercial trajectory for 2026, with roughly 1K new start forms anticipated in the next 9-12 months.

The rating updates came after Soleno Therapeutics, Inc. (NASDAQ:SLNO) announced its fiscal Q4 and full year 2025 financial results on February 25, reporting revenue, net, from the sale of VYKAT XR for the three and twelve months ended December 31, 2025, to be $91.7 million and $190.4 million, respectively. The company generated $48.7 million of cash flow from operating activities in fiscal Q4, and achieved profitability with positive net income of $20.9 million for the year.

Soleno Therapeutics, Inc. (NASDAQ:SLNO) is a clinical-stage biopharmaceutical company that develops and commercializes novel therapeutics to treat rare diseases. The company focuses on the treatment of neurobehavioral and metabolic disorders. Its lead candidate, Diazoxide Choline Controlled-Release (DCCR), is an oral tablet that treats Prader-Willi Syndrome (PWS).