RBC analysts cut their target price on MoonLake Immunotherapeutics (NASDAQ: MLTX) to $10 per share, from $67 previously, after the biotechnology company reported trial results for its highly anticipated skin disease treatment, sonelokimab, which they called “disappointing”.
The analysts also downgraded the stock to ‘Sector Perform’ from ‘Outperform’, citing meaningfully lower market opportunity, pending further clarity.
“Even if MoonLake can find a way to get the drug approved without additional work, sonelokimab's magnitude of effect (9-17%) looks uncompetitive with already-marketed IL17A/F,” the RBC analysts wrote.
They added, though, that the drug could still be viable, but sees the best-case scenario as a potential ~$1 billion sale to a speculative pharma firm, presuming everything goes right on regulatory front and future data is encouraging.
MoonLake Immunotherapeutics shares plummeted more than 90% to $6.08 in late-afternoon trading on Monday.