Analyst Yun Zhong from Wedbush maintained a Buy rating on MoonLake Immunotherapeutics and increased the price target to $34.00 from $18.00.
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Yun Zhong has given his Buy rating due to a combination of factors related to MoonLake’s lead asset sonelokimab (SLK) in hidradenitis suppurativa (HS). Following a recent FDA Type B meeting, he views the regulatory path as de‑risked, as existing Phase 2 and Phase 3 data are expected to be sufficient to support a BLA filing in the second half of 2026. He interprets the FDA’s guidance to include the MIRA Phase 2 results as a key sign that regulators see those data as central to establishing efficacy, despite VELA‑2 narrowly missing its primary endpoint. Combined with consistent safety findings and strong feedback from clinical experts emphasizing both SLK’s benefit–risk profile and the unmet need in HS, he raises his probability of success for the HS program and materially increases his long‑term market share assumptions, which together drive a higher price target.
Beyond HS, Zhong sees additional upside from MoonLake’s broader pipeline, particularly the late‑stage psoriatic arthritis (PsA) program. He highlights upcoming Phase 3 readouts in 2026 (IZAR‑1 and IZAR‑2) in both biologic‑naïve and biologic‑experienced patients, including a head‑to‑head comparison against an approved IL‑23 inhibitor. Prior Phase 2 PsA data showed SLK achieving its main efficacy goal even in the face of an unusually strong placebo response and producing numerically higher response rates than existing agents, including another IL‑17A/F–targeting therapy. In his view, this positions SLK as a potentially competitive entrant in PsA, adds meaningful optionality on top of the de‑risked HS opportunity, and supports his decision to rate MoonLake as a Buy and select it as one of his top ideas for 2026.
In another report released today, LifeSci Capital also maintained a Buy rating on the stock with a $33.00 price target.