#USA #San Francisco #VYKAT XR #Soleno Therapeutics #Scorpion Capital

Soleno Therapeutics Faces Major Investor Concerns After Stock Decline

On August 15, 2025, shares of Soleno Therapeutics, Inc. (NASDAQ: SLNO) fell sharply in response to a damning report published by Scorpion Capital. This investigative report has raised serious questions about the company's flagship drug, VYKAT™ XR, designed to treat hyperphagia, a condition linked to Prader-Willi syndrome. The decline in stock price signals a growing unease among investors regarding Soleno's claims about the drug's safety and efficacy.

Background of Soleno Therapeutics

Soleno Therapeutics is a biopharmaceutical company focused on developing treatments for rare genetic disorders. Its main product, VYKAT™ XR, is a once-daily oral tablet intended to mitigate the effects of hyperphagia, which is described as a significant challenge for those affected by Prader-Willi syndrome. The company has often highlighted this condition as severely limiting quality of life.

However, since the report's release, the credibility of these claims is now under scrutiny. Hagens Berman, a law firm representing shareholders, has officially initiated an investigation into Soleno to determine whether the company misrepresented the potential and safety of VYKAT™ XR.

Key Allegations by Scorpion Capital

The Scorpion Capital report leveled several serious allegations against Soleno Therapeutics:
1. Health Concerns: The report pointed to an alarming increase in hospitalizations linked to heart failure in children prescribed VYKAT™ XR. This could pose significant risks for the drug's future in the market, raising fears that it may be pulled or that sales might dramatically decrease.
2. Limited Pipeline: Scorpion characterized Soleno as a “one-trick pony,” implying that the company relies heavily on VYKAT™ XR for its success. With no other promising products in the pipeline, this dependency raises red flags for long-term viability.
3. Data Integrity Issues: Concerns were also raised regarding the integrity of clinical trial data, citing inconsistencies in research reports co-authored by a pivotal physician linked to Soleno. Such claims have cast doubt on the credibility of Soleno's research and submissions to regulatory bodies like the FDA.
4. Commercial Viability: The report criticized Soleno's commercialization strategy, suggesting that its projections might be overly optimistic and not supported by solid evidence.

Implications for Investors and Shareholders

The fallout from the Scorpion report has prompted Hagens Berman to urge investors who have suffered losses to step forward. The investigation seeks to establish if the firm misled shareholders regarding VYKAT™ XR's commercial potential and safety profile. As Soleno’s stock continues to decline, the uncertainties surrounding its only drug could play a decisive role in investor sentiment moving forward.

Those affected by the stock's turmoil are encouraged to explore their options for legal recourse, especially since the firm's investigation could lead to significant developments related to shareholder rights. The situation remains fluid, and further information from Hagens Berman may shed light on potential legal actions against Soleno Therapeutics.

Conclusion

As Soleno Therapeutics grapples with these serious allegations and the immediate backlash in the stock market, investors remain on edge. The outcomes of Hagens Berman's investigation and the future of VYKAT™ XR will likely be pivotal in determining the company’s long-term prospects. Stakeholders are advised to stay informed and consider their options given the current climate of uncertainty surrounding Soleno's operations and product offerings.