Soleno Therapeutics shares surged 56.4% over the past week after Neurocrine Biosciences announced plans to acquire the biotech company in an all-cash transaction valued at about $2.9 billion.

The deal has drawn investor attention because Neurocrine offered $53 per share for Soleno, a premium that quickly lifted the stock and sparked renewed interest in the rare-disease drug developer.

Soleno’s main asset, VYKAT XR, recently gained FDA approval and is used to treat hyperphagia in Prader-Willi syndrome, a key factor in making the company an attractive takeover target.

The acquisition is also seen as a strategic move by Neurocrine, which is expanding its reach in rare diseases and metabolic treatments.

The sharp stock move reflects both the takeover premium and growing confidence in Soleno’s long-term commercial potential.