Scorpion Capital discloses short position in drugmaker Soleno

Aug 15 (Reuters) - Scorpion Capital disclosed a short position in Soleno Therapeutics SLNO.O on Friday, citing issues with the drugmaker's recently approved treatment for a rare genetic disorder, sending its shares down 7.8%.

The company in March had received the U.S. Food and Drug Administration's approval for its drug, Vykat XR, to treat a condition called Prader-Willi syndrome. The drug treats hyperphagia — a symptom of the disorder that causes a feeling of insatiable hunger persisting even after meals.

Scorpion Capital alleged that the drug causes high risk of fluid buildup in the lungs and heart failure. It also said the drug "may be at risk of being withdrawn from market".

Soleno did not immediately respond to a request for comment. Reuters could not independently verify the claims raised in the report.

Two analysts said that doctors have no concerns about the drug's safety.

"Ultimately, what our view boils down to here is that doctor feedback on Vykat, especially safety has been consistently positive," said Stifel analyst James Condulis.

Piper Sandler analysts echoed the sentiment, noting that past checks consistently found no safety worries and overall comfort with the drug’s profile.

Edema and hyperglycemia are known side effects associated with Vykat, Condulis said in a note.

Shares of the company, which launched Vykat XR in April, have risen about 58% so far this year. Earlier this month, Soleno said it had seen 295 unique prescribers of the drug.

Previously, the short seller had also targeted other biotechs such as Harmony Biosciences HRMY.O and Allakos 37Z.SG.