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MoonLake takeover thesis reemerges after FT report, says Citi

Citi says MoonLake Immunotherapeutics (MLTX) takeover thesis has reemerged after the Financial Times reported Merck (MRK) expressed interested in acquiring MoonLake and submitted a non-binding offer for more than $3B earlier this year. The offer was reportedly rejected, which is unsurprising given the $3B price would represent only a 16% premium over Monday’s close, the analyst tells investors in a research note. The firm says its $72 per share price target implies a $4.5B valuation. It continues to believe MoonLake’s sonelokimab has the potential to demonstrate differentiated efficacy versus competitor Bimzelx. Citi keeps a Buy rating on the shares.

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