Cantor On MoonLake Immunotherapeutics - Initiates On Inexpensive Valuation, Strong Catalyst Path

Author: Vandana Singh | February 14, 2023 02:02pm

• Cantor Fitzgerald has initiated coverage on MoonLake Immunotherapeutics AG (NASDAQ: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 (NYSE:NVS) Cosentyx and UCB SA's (OTC:UCBJY) (OTC: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.

Posted In: MLTX NVS UCBJF UCBJY