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Investing.com - Clear Street has significantly lowered its price target on Moonlake Immunotherapeutics (NASDAQ:MLTX) to $12.00 from $108.00 while maintaining a Buy rating on the stock. The company, currently valued at $395 million, is trading near its 52-week low, with InvestingPro data showing seven analysts recently revising their earnings expectations downward.
The dramatic 89% reduction in price target follows lower-than-expected primary efficacy results from the company’s Vela program trials for its SLK therapy, Moonlake’s sole asset in development.
Clear Street noted that despite disappointing results, SLK showed HiSCR75 scores of up to approximately 36% in both Vela-1 and Vela-2 trials, with placebo-adjusted scores reaching up to 17%, comparable to competitor BIMZELX’s data.
The firm pointed to COSENTYX’s regulatory approval without statistically significant results in one of its Phase 3 trials as a potentially encouraging precedent for SLK’s path to approval, citing the therapy’s "overall favorable drug profile."
Clear Street expects investor sentiment to remain cautious pending additional data, particularly from the Phase 3 Izar-PsA program expected in the first half of 2026, which should provide greater clarity on SLK’s therapeutic potential.
In other recent news, Moonlake Immunotherapeutics announced mixed results from its Phase 3 VELA program for the treatment of hidradenitis suppurativa (HS). The VELA-1 trial achieved statistical significance with 35% of patients on sonelokimab reaching HiSCR75, a 75% reduction in inflammatory lesions, compared to 18% for placebo. However, the VELA-2 trial did not meet statistical significance, leading to a downgrade by Jefferies from Buy to Hold, with the price target slashed to $8.00 from $65.00. Despite this, Wedbush maintained its Outperform rating and $80.00 price target, acknowledging the trial results were unexpected but suggesting the stock may face significant pressure. Guggenheim reiterated its Buy rating, emphasizing that the VELA trial results remain on track for a September 2025 release. Clear Street also maintained a Buy rating with a $108.00 price target, expressing optimism about Moonlake’s SLK therapy as a potential blockbuster treatment. These recent developments highlight varying analyst perspectives on Moonlake’s future prospects.
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