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On Tuesday, Guggenheim analysts reiterated their Buy rating and maintained a $80.00 price target on Moonlake Immunotherapeutics stock (NASDAQ: MLTX), currently trading at $41.16. With analyst targets ranging from $65 to $104 and a highly bullish consensus rating, the stock has caught Wall Street’s attention. This follows reports that MERCK (NYSE: MRK) submitted a nonbinding offer for Moonlake earlier this year, which was initially declined. The possibility of renewed discussions remains open. According to InvestingPro, the company maintains strong financial health with a Fair Value suggesting current balanced pricing.
Moonlake’s sonelokimab, an anti-IL-17 A/F nanobody, is undergoing two Phase III studies for hidradenitis suppurativa (HS) with results expected in September 2025. With a market capitalization of $2.61 billion and a robust current ratio of 21.11, InvestingPro data shows the company is well-positioned financially to advance its clinical programs. Analysts noted MERCK’s recent acquisitions of companies prior to their Phase III readouts, suggesting a strategic interest in such opportunities.
Sonelokimab has shown promising results in HS, psoriatic arthritis (PsA), and psoriasis (PsO). The ongoing Phase III studies in HS are expected to have a high probability of success, according to Guggenheim.
The analysts highlighted the potential of sonelokimab to capitalize on the growing market for IL-17 monoclonal antibodies, projected to surpass $12 billion in global sales by 2025. They believe sonelokimab offers advantages in terms of convenience, unique action mode, and reduced infection risks compared to existing treatments.
Guggenheim continues to see sonelokimab as a valuable asset in the dermatology and rheumatology market, with Moonlake remaining one of their top investment ideas.
In other recent news, MoonLake Immunotherapeutics has been in the spotlight due to several significant developments. The company announced its first-quarter 2025 financial results and highlighted the completion of enrollment for its Phase 3 VELA program, which was achieved much faster than industry benchmarks. Analysts from H.C. Wainwright maintained a Buy rating with a $100 price target, emphasizing the promising outlook for the company’s lead drug candidate, sonelokimab, in treating hidradenitis suppurativa. Additionally, Wolfe Research upgraded MoonLake’s stock to Outperform, with a new price target of $61, citing the upcoming efficacy results of sonelokimab as a key catalyst. Meanwhile, BTIG analysts also upheld their Buy rating and $81 target, expressing optimism about sonelokimab’s favorable positioning against competitors in the market.
MoonLake has also been the subject of acquisition discussions, with reports of Merck (NSE:PROR) engaging in talks for a potential buyout valued at over $3 billion. Although initial offers were turned down, there remains a possibility of renewed negotiations. Cantor Fitzgerald maintained an Overweight rating on MoonLake, noting the successful launch of Bimzelx in the hidradenitis suppurativa market and its implications for MoonLake’s opportunities. The developments surrounding MoonLake have drawn attention from investors and analysts, highlighting the company’s strategic positioning and potential for growth.
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