NEW YORK, December 30, 2025, 2:16 PM ET — Regular session
- Soleno Therapeutics shares were down about 3% in afternoon trading, underperforming biotech ETFs.
- A Pomerantz law-firm “investor alert” revived scrutiny tied to an earlier short-seller report.
- Investors are watching the next update on Vykat XR launch metrics and any litigation filings.
Shares of Soleno Therapeutics, Inc. fell 3.1% to $46.09 in afternoon trading on Tuesday, after a law firm said it was investigating potential claims on behalf of investors. The drop outpaced declines in biotech benchmarks, with the SPDR S&P Biotech ETF down about 1.4% and the iShares Nasdaq Biotechnology ETF off about 1.1%.
The move matters because Soleno is still in the early innings of commercializing its first marketed drug, and the stock has traded with sharp swings as investors debate demand, safety perception and pricing power.
Legal headlines can amplify that volatility. Traders often treat “investor alerts” as a proxy for the risk that a formal securities lawsuit follows, even when no complaint has been filed.
Pomerantz LLP said late Monday it was investigating claims involving Soleno and certain officers and directors. In its release, the firm pointed to an August 2025 report by activist short seller Scorpion Capital that described Soleno’s drug Vykat XR as overpriced and potentially unsafe for children, and said the stock fell after the report.
Vykat XR is approved in the United States to treat hyperphagia — an intense, persistent hunger — in adults and children aged 4 years and older with Prader-Willi syndrome, according to the FDA label. The label also carries warnings for risks including hyperglycemia (high blood sugar) and fluid overload.
“My immediate reaction was relief… grateful that we now have an effective medication,” Jennifer Miller, a University of Florida pediatric endocrinologist, told NeurologyLive following the approval. NeurologyLive
In its most recent quarterly update, Soleno reported net product revenue of $66.0 million for the third quarter and net income of $26.0 million, and said it had received 1,043 patient start forms from approval through Sept. 30, with 764 active patients on therapy at quarter-end.
The stock remains well below its 52-week high and carries elevated short interest, a setup that can widen moves on incremental headlines. Soleno’s market value is about $2.5 billion and short interest is roughly 19% of the free float, according to Finviz data.
Tuesday’s decline comes as investors continue to parse how quickly Vykat XR adoption can broaden beyond early prescribers, and how durable payer coverage is as patient starts scale.
The next read for bulls and bears will be the company’s next launch update, including prescription starts, discontinuations and reimbursement trends — the metrics that have increasingly driven the stock more than pipeline optionality.
