Price Target For MoonLake Doubled: Analyst Says Lead Program Has 'Best-In-Class Profile'

HC Wainwright has increased the price target for MoonLake Immunotherapeutics MLTX from $37 to $75 with a Buy rating.

Last month, MoonLake Immunotherapeutics released topline results from its Phase 2 MIRA trial evaluating the Nanobody sonelokimab in patients with moderate-to-severe hidradenitis suppurativa (HS).

Both sonelokimab 120mg and 240mg doses achieved significantly higher Hidradenitis Suppurativa Clinical Response (HiSCR) 75 response rates than the placebo at week 12.

The win for MoonLake in HS opens up additional opportunities for sonelokimab.

The analyst says the Phase 2 (MIRA) data for sonelokimab (SLK) utilized HiSCR75 as its primary endpoint, an endpoint with a high bar for success vs. many other inflammation and immunology trials that utilize the lower hurdle, HiSCR50 endpoint. 

Highlighting the positive data for sonelokimab vs. all other HS competitors, sonelokimab showed much better HiSCR75 and HiSCR50 deltas vs. placebo relative to each respective competitor trial. 

The placebo crossover group at 12 weeks also showed rapid improvement in HiSCR75, HiSCR50, and HiSCR90 through four weeks of follow-up, further validating the benefit of SLK vs. placebo. 

The analyst says sonelokimab has a best-in-class profile. 

HC Wainwright raised the probability of approval for sonelokimab in HS and PsA to 70% while reducing the discount rate to 11% from the prior 13%.

Recently, Reuters reported MoonLake Immunotherapeutics reportedly engaged an investment bank as the company mulls a potential sale.

Price Action: MLTX shares are up 6.51% at $57.81 on the last check Monday.