Soleno Therapeutics(US:SLNO) Prnewswire·2025-11-07 15:04Core Viewpoint - Soleno Therapeutics, Inc. experienced a significant drop in share price by $18.78 (-28%) following disappointing news regarding its drug VYKAT™ XR, which is intended to treat hyperphagia associated with Prader-Willi syndrome [1][2]. Company Performance - The company had previously assured investors of a successful launch of VYKAT™ XR after receiving FDA approval, stating that the launch "has been going really well" and "definitely exceeded our expectations" [2]. - However, during the Q3 2025 earnings call, Soleno disclosed a disruption in the launch trajectory, citing a lower number of start forms and increased discontinuations due to non-serious adverse events [2]. Market Reaction - Following the negative news, Soleno's share price fell nearly 40% from August 14, 2025, to November 5, 2025 [4]. - The market reaction was influenced by concerns raised by short seller Scorpion Capital, which highlighted potential risks associated with VYKAT™ XR, including reports of children hospitalized for heart failure after using the drug [3][4]. Investigations and Allegations - Hagens Berman, a national shareholders rights firm, is investigating whether Soleno misled investors regarding the commercial prospects of VYKAT™ XR [5]. - Scorpion Capital characterized Soleno as a "one-trick pony" with no other significant assets or pipeline, raising doubts about the company's future if VYKAT™ XR fails [3][4]. - Allegations were made regarding the integrity of clinical trial data and the influence of a controversial physician involved in key trials, suggesting potential irregularities in the company's disclosures [4].