Goldman Sachs Starts Moonlake Immunotherapeutics (MLTX ) at Neutral, 'Competing Against Large Pharma Companies Is No Easy Task'

Goldman Sachs analyst Richard Law initiates coverage on Moonlake Immunotherapeutics (NASDAQ: MLTX ) with a Neutral rating and a price target of $62.00.

The analyst comments "All roads pointing to HS being the better path for sonelokimab than PsA. We are initiating coverage on MoonLake (MLTX) with a Neutral rating and a $62 price target. MLTX is developing sonelokimab (SLK), a small novel nanobody targeting both IL-17A & F inflammatory cytokines, for treating hidradenitis suppurativa (HS) and psoriatic arthritis (PsA). MLTX’s Ph. 2 study in HS demonstrated impressive results showing better HiSCR50/75/90 than placebo and Humira. Although many competing assets failed to duplicate success in Ph. 3, MLTX has meticulously preserved much of Ph. 2’s design in Ph. 3. Additionally, the strong statistical significance in Ph. 2 results and large Ph. 2 sample size gave us confidence that SLK has a reasonable chance to succeed in Ph. 3 and possibly demonstrate best-in-class efficacy in HS. However, the path to succeed commercially will be challenging due to heavy payer contracting that favor Humira and its biosimilars in 1L. Despite our optimism in HS, we did not see any convincing evidence of SLK’s differentiation in a very crowded and efficacious PsA market. We model SLK achieving WW risk-adj peak sales of $1.5B in HS and $680M in PsA in 2040. Our Neutral rating is driven by SLK’s high potential in HS but lower potential in PsA. Additionally, the lack of catalysts for rest of the year and MLTX not prioritizing a partnership prior to Ph. 3 data means little upside for the stock in 2024."

For an analyst ratings summary and ratings history on Moonlake Immunotherapeutics click here. For more ratings news on Moonlake Immunotherapeutics click here.

Shares of Moonlake Immunotherapeutics closed at $48.60 yesterday.

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