- Cantor Fitzgerald has initiated coverage on MoonLake Immunotherapeutics AG MLTX with an Overweight rating and a price target of $23.
- MoonLake’s lead program Sonelokimab or SLK (IL-17A & IL-17F nanobody), is currently in Phase 2 trials in Hidradenitis Suppurativa (HS-severe skin disease) and Psoriatic Arthritis (PsA).
- A more than $5 billion opportunity for SLK in HS is the primary driver of the analyst’s bullish view.
- Also See: HC Wainwright Starts Coverage On This ‘Best-In-Class Agent For Inflammatory Disorders.
- After recent positive phase 3 trials from competitor IL-17 injectables, Novartis AG’s NVS Cosentyx and UCB SA’s UCBJY UCBJF Bimekizumab raise the analyst’s confidence that SLK will work in HS and will likely raise the efficacy bar.
- Approval of IL-17 injectables over the next few years will significantly expand the HS market, and SLK could be a ~$1.5 billion drug.
- SLK is also de-risked in PsA. In September, FDA signed off Phase 2 study of sonelokimab for active psoriatic arthritis.
- This is a good entry point and timing for buying MLTX shares. The valuation is inexpensive relative to other immunology peers and has a strong catalyst path over the next 12 months.
- Price Action: MLTX shares are up 4.79% at $17.08 on the last check Tuesday.
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