(Reuters) -Scorpion Capital disclosed a short position in Soleno Therapeutics on Friday, citing issues with the drugmaker’s recently approved treatment Vykat XR, sending its shares slumping 15% in premarket trading.
The U.S. Food and Drug Administration approved Soleno’s drug to treat a rare genetic disorder called Prader-Willi syndrome in March. The drug treats hyperphagia — a symptom of the disorder that causes a feeling of insatiable hunger persisting even after meals.
Scorpion Capital alleges that the drug causes high risk of fluid buildup in the lungs and heart failure.
Soleno did not immediately respond to a request for comment. Reuters could not verify the claims raised in the report.
(Reporting by Bhanvi Satija and Sneha S K in Bengaluru; Editing by Shilpi Majumdar)
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