Int'l Biotechnology Trust bullish on future biotech M&A after Soleno acquisition

(Sharecast News) - Biotech investor International Biotechnology Trust has said that it expects the current wave of "frenetic" biotech M&A activity to continue after it was announced that its flagship portfolio company Soleno was acquired this week for $2.9bn.

Soleno Therapeutics, the rare diseases specialist whose lead candidate is a drug that combats hyperphagia (excessive hunger) symptoms for patients with Prader-Willi Syndrome, is currently IBT's largest holding representing 6% of its net asset value as of last Wednesday.

The Nasdaq-listed firm was purchased on Monday by Neurocrine Biosciences for $53 per share, pushing the stock up 32.3% by the close to $52.25, compared with last Friday's close of $39.49.

"We are seeing frenetic dealmaking activity in the biotech sector as we move into Q2 2026, with pharmaceutical companies continuing to rely on acquisitions of innovative biotechnology companies to add new therapies to their pipelines and replace lost revenues from patent expiries in the coming years," said Ailsa Craig and Marek Poszepczynski, portfolio managers of IBT.

"Soleno is part of a growing cohort of mature, clinically de-risked companies that we refer to as 'Biotech 2.0', with these businesses capable of being acquisition targets or generating significant revenues as standalone companies."

Soleno marks the fourth acquisition within IBT's portfolio in 2026, with three deals in March alone.

"We expect this wave of M&A activity to continue and have positioned our portfolio to take advantage, with the drivers of elevated dealflow activity likely to remain firmly in place for the foreseeable future," the portfolio managers said in a joint statement.

IBT shares were up 3% at 961.92p by 1153 GMT.

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