Soleno Therapeutics Stock Plunges 16% After Scorpion Capital Short Report

Soleno Therapeutics (SLNO) dropped 16% in premarket trading after a new short report from Scorpion Capital. Scorpion Capital disclosed it's short Soleno Therapeutics. Soleno has short interest of 11%.

Soleno Therapeutics (SLNO) experienced a significant drop in premarket trading on July 2, 2025, following a new short report from Scorpion Capital. The stock fell by 16% after the report was disclosed, indicating a bearish sentiment towards the company. Scorpion Capital, a prominent investment firm, has taken a short position on Soleno Therapeutics, suggesting that they believe the stock is overvalued or has significant risks.

The short interest in Soleno Therapeutics is currently at 11%, which is a notable level but not uncommon for a company with a volatile stock price. Short interest represents the percentage of a company's shares that have been sold short by investors who believe the stock price will decrease.

Soleno Therapeutics has been a subject of interest among investors due to its recent developments and potential. The company has been actively expanding its operations, particularly in Europe, and has a robust launch trajectory for its Vykat XR product. Additionally, it has a substantial cash war chest of $500 million, which could provide financial flexibility for future growth and investments.

However, the short report from Scorpion Capital has cast a shadow over these positive aspects. Investors should closely monitor the developments and any official responses from Soleno Therapeutics to assess the impact of the report on the company's stock price and future prospects.

References:
[1] https://seekingalpha.com/news/4486120-soleno-therapeutics-plunges-after-short-report-from-scorpion-capital