Soleno Therapeutics Shares Drop 26.59% Following Safety Concerns Over Vykat XR
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 12 2026
0mins
Should l Buy SLNO?
Source: Businesswire
- Stock Price Plunge: Following a report from Scorpion Capital labeling Soleno's sole product, Vykat XR, as overpriced and potentially unsafe for children, the company's shares fell by $5.73 on August 15, 2025, representing a decline of approximately 7.41%.
- Rising Discontinuation Rate: During the quarterly earnings call on November 4, 2025, Soleno's CEO disclosed that the discontinuation rate for Vykat XR due to adverse effects was around 8% at the end of Q3 2025, raising further concerns among investors.
- Significant Stock Drop: Following the earnings report, Soleno's stock plummeted by $16.98, or 26.59%, from $63.85 to $46.87 on November 5, 2025, reflecting strong investor apprehension regarding product safety.
- Ongoing Legal Investigation: Kirby McInerney LLP is investigating potential violations of federal securities laws by Soleno and its senior management on behalf of investors, which could have significant implications for the company's future legal and financial standing.
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Analyst Views on SLNO
Wall Street analysts forecast SLNO stock price to rise
8 Analyst Rating
8 Buy
0 Hold
0 Sell
Strong Buy
Current: 52.630
Low
75.00
Averages
110.50
High
125.00
Current: 52.630
Low
75.00
Averages
110.50
High
125.00
About SLNO
Soleno Therapeutics, Inc. is a biopharmaceutical company. The Company is focused on developing novel therapeutics for the treatment of rare diseases. The Company’s lead product candidate, diazoxide choline extended-release tablets (DCCR), is for the treatment of Prader-Willi syndrome (PWS) in individuals four years and older who have hyperphagia. DCCR contains diazoxide choline, a potent ATP-sensitive potassium (KATP) channel activator. DCCR tablets consist of the active ingredient diazoxide choline, a choline salt of diazoxide, which is a benzothiadiazine. Its proposed mode of action, with targets in the brain, pancreas and fat tissue, has the potential to broadly impact complex diseases like PWS to reduce appetite, reduce food-seeking, decrease insulin and leptin resistance, and reduce body fat. The Company has Breakthrough Therapy and Fast-Track designations in the United States and Orphan Drug designations in the United States and European Union.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Soleno Therapeutics Class Action Reminder for Investors
- Lawsuit Background: Soleno Therapeutics is facing a class action lawsuit due to safety issues related to its DCCR drug, with investors who purchased stock between March 26, 2025, and November 4, 2026, potentially seeking to recover losses.
- Stock Price Volatility: On August 15, 2025, Soleno's stock price dropped 11.98% to $68.09 over two days following a report from Scorpion Capital, indicating market concerns regarding the drug's safety.
- Significant Disclosure: On September 10, 2025, Soleno disclosed that a patient died after taking DCCR, causing the stock price to decline by 19.21% to $56.72 over two days, further exacerbating investor losses.
- Financial Impact: On November 4, 2025, Soleno reported financial results indicating that DCCR's market launch was disrupted, leading to a 26.59% drop in stock price to $46.87, reflecting a severe loss of investor confidence in the company's future prospects.
See More
Soleno Therapeutics Faces Class Action Lawsuit
- Class Action Reminder: The Schall Law Firm alerts investors of a class action lawsuit against Soleno Therapeutics for violations of securities laws, concerning securities transactions between March 26, 2025, and November 4, 2025, with a deadline for participation set for May 5, 2026.
- False Statements Allegation: The complaint alleges that Soleno misled the market regarding safety concerns in its DCCR clinical trial, resulting in investor losses when the truth was revealed, highlighting significant failures in the company's disclosure practices.
- Increased Safety Risks: Soleno's DCCR treatment is accused of having greater safety risks and lower commercial viability than disclosed, undermining investor confidence and potentially leading to a decline in stock price due to these undisclosed risks.
- Legal Implications: Until the class action is certified, investors are not represented by an attorney, and those who choose not to act may remain absent class members, risking their opportunity to recover losses.
See More
Soleno Therapeutics Faces Class Action Lawsuit
- Stock Price Plunge: Soleno Therapeutics experienced a significant 27% drop in stock price on November 4, 2025, following the release of its Q3 financial results, indicating severe investor harm due to major disruptions in the commercial launch of its lead drug, DCCR.
- Deteriorating Patient Data: Management revealed a decline in patient start forms and an increase in discontinuations within the Prader-Willi syndrome community, suggesting that DCCR's market acceptance is faltering, which could lead to decreased future revenues and impact the company's overall financial health.
- Concealed Safety Risks: The class action lawsuit alleges that Soleno systematically concealed significant safety evidence in its Phase 3 clinical trial, particularly downplaying risks related to “excess fluid retention,” which led to a 12% stock decline in August 2025, further undermining DCCR's commercial viability.
- Legal Recourse for Investors: Investors are encouraged to file a lead plaintiff motion by May 5, 2026, seeking to recover losses due to corporate wrongdoing, reflecting a strong investor concern for the company's transparency and accountability.
See More
Faruqi & Faruqi Investigates Soleno Securities Fraud Claims
- Legal Investigation Initiated: Faruq & Faruq LLP is investigating potential claims against Soleno Therapeutics, particularly for investors who purchased securities between March 26 and November 4, 2025, urging them to seek lead plaintiff status by the May 5, 2026 deadline, which could significantly impact their legal rights.
- Safety Concerns Exposed: The complaint alleges that Soleno and its executives violated federal securities laws by failing to disclose significant safety evidence related to the DCCR clinical trial, resulting in higher risks for investors and potentially affecting the company's future market performance and investor confidence.
- Stock Price Volatility: Following a critical report from Scorpion Capital on August 15, 2025, Soleno's stock price plummeted from $77 to $68, a nearly 12% drop; additionally, after a patient death was disclosed on September 10, the stock fell from $70 to $57, a 19% decline, indicating market concerns about the company's outlook.
- Financial Results Impact: Soleno's Q3 financial results released on November 4, 2025, revealed that the launch trajectory of DCCR was disrupted by the earlier report, leading to fewer patient start forms and increased discontinuations, causing the stock to drop from $64 to $47 in one day, a 27% decline, reflecting severe damage to market confidence in its products.
See More
Soleno Therapeutics Faces Securities Class Action Lawsuit
- Lawsuit Background: Hagens Berman reminds investors that Soleno Therapeutics (NASDAQ: SLNO) is facing a securities class action lawsuit with a lead plaintiff deadline of May 5, 2026, affecting those who purchased shares between March 26 and November 4, 2025.
- Safety Risk Allegations: The lawsuit alleges that Soleno concealed significant safety risks associated with its flagship product, VYKAT™ XR (DCCR), including serious concerns such as excess fluid retention and potential heart failure in children, which could severely impact the company's credibility and stock performance.
- Data Integrity Issues: A report by activist short seller Scorpion Capital highlighted that Soleno's Phase 3 clinical trials relied on a controversial physician whose data showed irregularities, raising serious questions about the integrity of the company's claims and potentially undermining investor confidence.
- Stock Price Plunge: Following Soleno's admission on November 4, 2025, of disruptions in DCCR's launch trajectory, the stock plummeted 27% in a single day, reflecting the market's deep concerns regarding the company's future prospects and operational viability.
See More
Investor Rights Law Firm Investigates Multiple Companies
- Legal Investigation Launched: Halper Sadeh LLC is investigating Soleno Therapeutics, Inc. (NASDAQ:SLNO) regarding its sale to Neurocrine Biosciences for $53.00 per share in cash, which may infringe on shareholder rights, prompting shareholders to understand their legal rights and options.
- Complex Transaction Terms: Thermon Group Holdings, Inc. (NYSE:THR) is proposed to be sold to CECO Environmental Corp., where shareholders can choose between $10.00 in cash plus 0.6840 shares of CECO stock, $63.89 per share, or 0.8110 shares of CECO stock, potentially affecting the final returns for shareholders.
- Cash Acquisition Proposal: Affinity Bancshares, Inc. (NASDAQ:AFBI) plans to sell to Fidelity BancShares (N.C.) for $23.00 per share in cash, subject to adjustments based on the adjusted stockholders' equity at closing, adding uncertainty to the transaction.
- Shareholder Rights Protection: Halper Sadeh LLC represents investors globally, seeking increased consideration, additional disclosures, or other relief measures to protect shareholder rights and address potential securities fraud issues.
See More
Soleno Therapeutics Class Action Reminder for Investors
- Lawsuit Background: Soleno Therapeutics is facing a class action lawsuit due to safety issues related to its DCCR drug, with investors who purchased stock between March 26, 2025, and November 4, 2026, potentially seeking to recover losses.
- Stock Price Volatility: On August 15, 2025, Soleno's stock price dropped 11.98% to $68.09 over two days following a report from Scorpion Capital, indicating market concerns regarding the drug's safety.
- Significant Disclosure: On September 10, 2025, Soleno disclosed that a patient died after taking DCCR, causing the stock price to decline by 19.21% to $56.72 over two days, further exacerbating investor losses.
- Financial Impact: On November 4, 2025, Soleno reported financial results indicating that DCCR's market launch was disrupted, leading to a 26.59% drop in stock price to $46.87, reflecting a severe loss of investor confidence in the company's future prospects.
See More
Soleno Therapeutics Faces Class Action Lawsuit
- Class Action Reminder: The Schall Law Firm alerts investors of a class action lawsuit against Soleno Therapeutics for violations of securities laws, concerning securities transactions between March 26, 2025, and November 4, 2025, with a deadline for participation set for May 5, 2026.
- False Statements Allegation: The complaint alleges that Soleno misled the market regarding safety concerns in its DCCR clinical trial, resulting in investor losses when the truth was revealed, highlighting significant failures in the company's disclosure practices.
- Increased Safety Risks: Soleno's DCCR treatment is accused of having greater safety risks and lower commercial viability than disclosed, undermining investor confidence and potentially leading to a decline in stock price due to these undisclosed risks.
- Legal Implications: Until the class action is certified, investors are not represented by an attorney, and those who choose not to act may remain absent class members, risking their opportunity to recover losses.
See More
Soleno Therapeutics Faces Class Action Lawsuit
- Stock Price Plunge: Soleno Therapeutics experienced a significant 27% drop in stock price on November 4, 2025, following the release of its Q3 financial results, indicating severe investor harm due to major disruptions in the commercial launch of its lead drug, DCCR.
- Deteriorating Patient Data: Management revealed a decline in patient start forms and an increase in discontinuations within the Prader-Willi syndrome community, suggesting that DCCR's market acceptance is faltering, which could lead to decreased future revenues and impact the company's overall financial health.
- Concealed Safety Risks: The class action lawsuit alleges that Soleno systematically concealed significant safety evidence in its Phase 3 clinical trial, particularly downplaying risks related to “excess fluid retention,” which led to a 12% stock decline in August 2025, further undermining DCCR's commercial viability.
- Legal Recourse for Investors: Investors are encouraged to file a lead plaintiff motion by May 5, 2026, seeking to recover losses due to corporate wrongdoing, reflecting a strong investor concern for the company's transparency and accountability.
See More
Faruqi & Faruqi Investigates Soleno Securities Fraud Claims
- Legal Investigation Initiated: Faruq & Faruq LLP is investigating potential claims against Soleno Therapeutics, particularly for investors who purchased securities between March 26 and November 4, 2025, urging them to seek lead plaintiff status by the May 5, 2026 deadline, which could significantly impact their legal rights.
- Safety Concerns Exposed: The complaint alleges that Soleno and its executives violated federal securities laws by failing to disclose significant safety evidence related to the DCCR clinical trial, resulting in higher risks for investors and potentially affecting the company's future market performance and investor confidence.
- Stock Price Volatility: Following a critical report from Scorpion Capital on August 15, 2025, Soleno's stock price plummeted from $77 to $68, a nearly 12% drop; additionally, after a patient death was disclosed on September 10, the stock fell from $70 to $57, a 19% decline, indicating market concerns about the company's outlook.
- Financial Results Impact: Soleno's Q3 financial results released on November 4, 2025, revealed that the launch trajectory of DCCR was disrupted by the earlier report, leading to fewer patient start forms and increased discontinuations, causing the stock to drop from $64 to $47 in one day, a 27% decline, reflecting severe damage to market confidence in its products.
See More
Soleno Therapeutics Faces Securities Class Action Lawsuit
- Lawsuit Background: Hagens Berman reminds investors that Soleno Therapeutics (NASDAQ: SLNO) is facing a securities class action lawsuit with a lead plaintiff deadline of May 5, 2026, affecting those who purchased shares between March 26 and November 4, 2025.
- Safety Risk Allegations: The lawsuit alleges that Soleno concealed significant safety risks associated with its flagship product, VYKAT™ XR (DCCR), including serious concerns such as excess fluid retention and potential heart failure in children, which could severely impact the company's credibility and stock performance.
- Data Integrity Issues: A report by activist short seller Scorpion Capital highlighted that Soleno's Phase 3 clinical trials relied on a controversial physician whose data showed irregularities, raising serious questions about the integrity of the company's claims and potentially undermining investor confidence.
- Stock Price Plunge: Following Soleno's admission on November 4, 2025, of disruptions in DCCR's launch trajectory, the stock plummeted 27% in a single day, reflecting the market's deep concerns regarding the company's future prospects and operational viability.
See More
Investor Rights Law Firm Investigates Multiple Companies
- Legal Investigation Launched: Halper Sadeh LLC is investigating Soleno Therapeutics, Inc. (NASDAQ:SLNO) regarding its sale to Neurocrine Biosciences for $53.00 per share in cash, which may infringe on shareholder rights, prompting shareholders to understand their legal rights and options.
- Complex Transaction Terms: Thermon Group Holdings, Inc. (NYSE:THR) is proposed to be sold to CECO Environmental Corp., where shareholders can choose between $10.00 in cash plus 0.6840 shares of CECO stock, $63.89 per share, or 0.8110 shares of CECO stock, potentially affecting the final returns for shareholders.
- Cash Acquisition Proposal: Affinity Bancshares, Inc. (NASDAQ:AFBI) plans to sell to Fidelity BancShares (N.C.) for $23.00 per share in cash, subject to adjustments based on the adjusted stockholders' equity at closing, adding uncertainty to the transaction.
- Shareholder Rights Protection: Halper Sadeh LLC represents investors globally, seeking increased consideration, additional disclosures, or other relief measures to protect shareholder rights and address potential securities fraud issues.
See More
