MoonLake Immunotherapeutics initiated with an Outperform at RBC Capital

RBC Capital initiated coverage of MoonLake Immunotherapeutics (MLTX) with an Outperform rating and $67 price target The firm’s analysis and feedback provides confidence lead drug sonelokimab will show clear, statistically significant benefits in the mid-year phase III hidradenitis suppurativa readout and 22%-24% placebo adjusted HiSCR75 delta, reflecting an incrementally better profile vs. currently marketed competitor bime, positioning sonelokimab as an early-line biologic of choice that helps drive a $2.5B per year sales opportunity, the analyst tells investors in a research note. The market opportunity in HS is likely to be underestimated, enabling long-term appreciation, the firm argues.