Neurocrine Biosciences has agreed to acquire Soleno Therapeutics for $2.9 billion, the companies announced. The acquisition represents Neurocrine's strategic expansion into metabolic diseases and rare disorders.

The deal will broaden Neurocrine's existing portfolio beyond its current focus areas. Soleno Therapeutics specializes in developing treatments for rare diseases, particularly those affecting metabolism and endocrine function.

News of the acquisition drove significant premarket trading activity in Soleno's stock, with shares moving substantially higher on the announcement. The transaction adds to recent merger and acquisition activity in the biotechnology sector.

The acquisition is expected to enhance Neurocrine's pipeline of treatments for endocrinology and rare disease conditions. Financial terms indicate the deal values Soleno at a significant premium to its recent trading levels.

Both companies have not yet disclosed the expected timeline for completing the transaction, which will likely require standard regulatory approvals and shareholder votes.