Needham starts MoonLake with Buy rating, $76 price target

Needham analyst Serge Belanger initiated coverage of MoonLake Immunotherapeutics with a Buy rating and $76 price target. The company’s sonelokimab, a dual IL-17A/-17F inhibitor nanobody for various chronic dermatology conditions, has demonstrated “best-in-class potential” in hidradenitis suppurativa and psoriasis with superior efficacy versus well known biologics, the analyst tells investors in a research note. The firm says sonelokimab, offers a highly effective mechanism of action and differentiated biologics-like treatment to a group of blockbuster indications for a combined $30B market opportunity that is expected to grow to $40B-$50B by the mid-2030s. It thinks catalysts and news flow over the next six months can drive additional shareholder value and increase MoonLake’s appeal as a takeover target for large pharma players.