In a report released yesterday, Alex Thompson CFA from Stifel Nicolaus downgraded MoonLake Immunotherapeutics to a Hold, with a price target of $13.00.
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Alex Thompson CFA has given his Hold rating due to a combination of factors affecting MoonLake Immunotherapeutics. The top-line results from the Phase 3 VELA program for Sonelokimab in Hidradenitis Suppurativa were less favorable than expected, with VELA-1 showing limited differentiation from existing treatments and VELA-2 failing to achieve statistical significance. This has led to a significant reduction in the probability of success for regulatory approval in the near term, impacting the stock’s outlook.
Moreover, the company’s path to registration remains uncertain, and the potential for market penetration has been downgraded. The anticipated peak penetration in the moderate-to-severe HS market has been revised downwards, reflecting a more cautious stance on future sales potential. These factors collectively contribute to the Hold rating, as the stock’s potential upside is tempered by these uncertainties.
Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MLTX in relation to earlier this year.