MoonLake's Potential Sale: Stock Price Up Fivefold Since Public Debut In 2022

MoonLake Immunotherapeutics MLTX has reportedly engaged an investment bank as the Swiss company looks for a potential sale.

The company focuses on developing antibody-derived treatments for inflammatory skin conditions.

The is in preliminary talks with pharmaceutical companies interested in a potential acquisition. Citing the sources, Reuters emphasized that a deal isn't guaranteed and wished to remain anonymous. 

Companies specializing in immunology have been popular acquisition targets, as indicated by recent acquisitions such as Merck & Co Inc's MRK purchase of Prometheus BioSciences Inc and Eli Lilly And Co's LLY acquisition of Dice Therapeutics Inc DICE.

Also Read: Cantor On MoonLake Immunotherapeutics - Initiates On Inexpensive Valuation, Strong Catalyst Path.

Recently, MoonLake released topline results from its Phase 2 MIRA trial evaluating the Nanobody sonelokimab in patients with moderate-to-severe hidradenitis suppurativa (HS), meeting its primary endpoint.

A few days later, the company stated it had raised $400 million through a stock sale to continue funding the development of sonelokimab.

If successful, MoonLake could enter a market dominated by bigger players like Novartis AG NVS and AbbVie Inc ABBV. 

MoonLake was established in 2021 when Merck KGaA licensed the first-stage clinical development of Sonelokimab to a newly created company.

In 2022, MoonLake became a public company through a merger with a special purpose acquisition company (SPAC), raising over $200 million in cash. Since its market debut, its share price has increased fivefold.

Price Action: MLTX shares are down 7.74% at $50.07 during the premarket session on the last check Monday.