Activist short-seller Scorpion Capital disclosed a short position in Soleno Therapeutics on 15 August and published a lengthy report that accuses the California-based biotech of misrepresenting the safety and efficacy of its newly launched diazoxide choline extended-release tablets for Prader-Willi syndrome, a rare genetic disorder. The report alleges “suspect data,” “sham clinical trials” and a price of roughly $500,000 per patient per year for what Scorpion calls a repackaged generic drug more than 50 years old. Scorpion said it will soon file a Citizen Petition asking the U.S. Food and Drug Administration to review the drug’s approval and post-marketing safety record, which the firm claims is marred by adverse events that have undermined uptake. The short seller, which has previously targeted several health-care companies, characterised the product’s commercial launch as one of the most disappointing in recent memory. Investors responded swiftly to the claims, with trading volumes in Soleno shares spiking after the report’s release. Soleno did not immediately comment on the allegations. An FDA spokesperson was not available for comment.