Is SLNO (Soleno Therapeutics, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, SLNO is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in SLNO.

Soleno Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on developing novel therapeutics for rare diseases. Its primary asset is Diazoxide Choline Controlled-Release, a once-daily oral tablet currently in Phase III clinical trials for the treatment of Prader-Willi Syndrome. For Muslim investors utilizing HalalStocks.co.uk, SLNO currently holds a Doubtful Shariah compliance status under AAOIFI standards. While the company easily passes the business activity, debt, and cash screens, it fails the critical interest income threshold, meaning it cannot be considered fully halal at this time. From an Islamic finance perspective, Soleno's balance sheet is incredibly clean regarding leverage, boasting a near-zero debt-to-market cap ratio of just 0.1%. The primary compliance hurdle lies in its cash management, as interest-bearing accounts generated 8.90% of total revenue, exceeding the 5% limit allowed for halal portfolios. Because Soleno is a clinical-stage company with limited commercial revenue, interest earned on its cash reserves easily skews its income ratios. Muslim investors should monitor the stock closely, as future commercialization and drug sales could dilute the interest income percentage and potentially bring SLNO back into Shariah compliance. Soleno Therapeutics, Inc. operates in the Healthcare sector under the Biotechnology industry and is headquartered in Redwood City, CA, US. The company is led by CEO Anish Bhatnagar and employs approximately 115 people.

SLNO was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. SLNO passed 3 of these 4 screens.

SLNO was last screened on 2026-04-27. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.