Why Shares of Soleno Therapeutics Dropped on Wednesday
Shares of Soleno Therapeutics (NASDAQ: SLNO) were down more than 23% as of 3 p.m. on Wednesday, a day after the pharmaceutical stock rose as much as 420% on news regarding its prospective treatment for Prader-Willi Syndrome (PWS), a rare genetic disorder.
Investors took the opportunity to take profits following the stock's big run the day before. Thanks to the rise, even with Soleno's shares falling on Wednesday, sellers were bound to make money, assuming they bought the stock as late as Monday when it was as high as only $4.86 a share. On Wednesday, the lowest the stock sold for was still above $20 a share.
On Tuesday, the clinical-stage biotech said that it planned to submit a New Drug Application (NDA) to the Food and Drug Administration (FDA) regarding diazoxide choline controlled-release (DCCR) to treat PWS. That came after the company reported phase-3 data that showed a dramatic improvement for PWS patients compared to a placebo in a long-term study.
Source Fool.com
