MoonLake Immunotherapeutics, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on the stock and has a $100.00 price target.
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Ram Selvaraju has given his Buy rating due to a combination of factors including the upcoming release of top-line data from MoonLake Immunotherapeutics’ Phase 3 VELA program, which is a significant potential catalyst for the company. The VELA program, focusing on the lead candidate sonelokimab in hidradenitis suppurativa, is crucial as it mirrors the patient baseline characteristics from the earlier MIRA Phase 2 study, thus mitigating risks. If the VELA data shows sonelokimab’s superiority over bimekizumab, MoonLake could potentially become a leading player in the HS market and an attractive target for mergers and acquisitions.
Financially, MoonLake is in a strong position with $425 million in cash and equivalents, and access to an additional $425 million through a debt facility, which is expected to support operations until 2028. Despite higher-than-expected R&D expenses, the company is actively conducting multiple trials, including the VELA-TEEN, LEDA, and S-OLARIS trials, indicating robust pipeline development. The anticipated data readouts and ongoing trials contribute to the optimistic outlook, reinforcing the Buy rating.
In another report released on August 6, Leerink Partners also reiterated a Buy rating on the stock with a $73.00 price target.