According to the latest disclosed agreement terms, if the acquisition is terminated under specific circumstances, Soleno Therapeutics (SLNO) will be required to pay Neurocrine Biosciences (NBIX) a termination fee of up to 953 millions dollars.

This clause establishes a clear risk hedging mechanism for the transaction. The stipulated amount reflects the mutual recognition of the transaction’s value by both parties, while also providing contractual protection for unforeseen circumstances. Analysts point out that such termination fee clauses are common in mergers and acquisitions within the biopharmaceutical industry, as they both protect the interests of the acquiring party and demonstrate the seller's sincerity in the transaction.