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Monday, Cantor Fitzgerald reiterated an Overweight rating on Moonlake Immunotherapeutics (NASDAQ: MLTX), a $2.4 billion market cap biotech company that appears undervalued according to InvestingPro analysis. The firm highlighted the successful launch of Bimzelx in the treatment of Hidradenitis Suppurativa (HS) and its implications for the company, which maintains a strong financial health score of "GOOD" and impressive liquidity with a current ratio of 21.11. Bimzelx, which is also indicated for various dermatological and rheumatological conditions, has shown a significant increase in prescriptions, particularly in the first quarter, with a quarter-over-quarter total prescription growth of 60%.
The analyst from Cantor Fitzgerald pointed out that February and March marked a notable uptick in Bimzelx prescriptions, aligning with increased sales and marketing efforts by UCB following the HS launch in November 2024. This positive momentum comes as analysts set price targets ranging from $65 to $104, suggesting significant upside potential from the current price of $38.06. While Bimzelx is used to treat multiple conditions, the recent growth in prescriptions is partially attributed to its launch in the HS market, offering Moonlake Immunotherapeutics a clearer view of the opportunity in this area.
Furthermore, the analyst noted that it is difficult to ascertain the exact contribution of the HS indication to the overall growth of Bimzelx prescriptions, given its multiple indications. However, the drug’s access for psoriasis treatment has improved in 2025, with CVS, one of the top three Pharmacy Benefit Managers (PBMs), now listing Bimzelx as a preferred first-line option for psoriasis among other medications.
Moonlake Immunotherapeutics’ focus on the HS market is supported by the current prescription trends and the enhanced positioning of Bimzelx for psoriasis treatment. The Overweight rating by Cantor Fitzgerald suggests confidence in the company’s stock performance and the potential market opportunities arising from the recent developments in its product offerings. With the next earnings report scheduled for May 8, 2025, investors seeking deeper insights can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
In other recent news, Moonlake Immunotherapeutics has received continued support from multiple analyst firms regarding its lead drug candidate, sonelokimab (SLK). BTIG analysts maintained their Buy rating with an $81 price target, citing SLK’s promising efficacy in treating Hidradenitis Suppurativa (HS) based on Phase 2b MIRA trial results. Similarly, Guggenheim Securities reiterated their Buy rating and $80 price target, highlighting SLK’s strong performance compared to a competing drug, povorcitinib, which recently showed modest efficacy in Phase III trials. Both BTIG and Guggenheim noted that SLK’s efficacy positions it favorably in the market as a potential leading treatment option for HS.
Cowen analysts also reaffirmed their Buy rating, expressing confidence in SLK’s potential to penetrate markets for HS and Psoriatic Arthritis (PsA), with projected peak revenues exceeding $4 billion. They anticipate the drug’s launch in 2027 and have highlighted its promising results in earlier phase trials for Psoriasis, PsA, and HS. The pivotal Phase III VELA study results for SLK are expected in mid-2025, which will be a significant milestone for Moonlake Immunotherapeutics.
Moonlake plans to host a Capital Markets Update in the second quarter of 2025 to discuss the VELA program and provide additional clinical and financial updates. Guggenheim has identified Moonlake as their Best Idea, and Cowen has recognized the company as a "Europe Best Idea," reflecting high expectations for its growth. These endorsements underscore the analysts’ positive outlook on Moonlake’s stock and its potential impact within the biopharmaceutical sector.
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