Neurocrine Biosciences Completes $2.9B Soleno Acquisition, Secures $1B Revolving Credit Facility

summarizeSummary

Neurocrine Biosciences completed its $2.9 billion acquisition of Soleno Therapeutics, expanding its rare disease portfolio, and simultaneously secured a new $1.0 billion revolving credit facility, drawing $600 million.

check_boxKey Events

• Acquisition Completion

  Neurocrine Biosciences completed the acquisition of Soleno Therapeutics, Inc. for approximately $2.9 billion in cash on May 18, 2026. This follows the definitive agreement announced on April 6, 2026.

• New Product Added

  The acquisition adds VYKAT™ XR (diazoxide choline) tablets, the first and only approved medicine for hyperphagia in Prader-Willi syndrome, to Neurocrine's commercial portfolio.

• Revolving Credit Facility Established

  The company entered into a five-year, $1.0 billion senior secured revolving credit facility on May 14, 2026, with an initial borrowing of $600.0 million. The facility is secured by substantially all of the company's assets.

• Financial Covenants

  The credit agreement includes financial covenants, such as a maximum total net leverage ratio of 3.75:1.00 (or 4.25:1.00 during a Covenant Holiday Period) and a minimum consolidated interest coverage ratio of 2.00:1.00.

auto_awesomeAnalysis

Neurocrine Biosciences has finalized its significant $2.9 billion cash acquisition of Soleno Therapeutics, adding VYKAT XR, an approved therapy for Prader-Willi syndrome, to its rare disease portfolio. This strategic move expands Neurocrine's product offerings and strengthens its market position. Concurrently, the company established a new $1.0 billion senior secured revolving credit facility, drawing $600 million initially. This credit line enhances the company's financial flexibility and liquidity, especially following the large cash outlay for the acquisition, and is secured by substantially all of its assets. The completion of this acquisition and the securing of new financing are critical developments for the company's growth strategy and financial stability.