Soleno Therapeutics Inc. concealed issues with its first commercial drug, leading to stock declines after a short seller piled on accusations, a proposed class action said.
The drug was approved by US regulators last year to treat hyperphagia, a feeling of insatiable hunger, in people with a rare genetic condition called Prader-Willi syndrome. Following the launch of Soleno’s diazoxide choline extended-release tablets, short seller Scorpion Capital LLC released a 415-page report accusing the company of clinical trial issues, safety and efficacy concerns with the drug, and adverse patient reactions.
The biopharmaceutical company’s stock price dropped 12% over two trading days ...
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