MoonLake Immunotherapeutics double-downgraded to Underperform at Wolfe Research

Wolfe Research downgraded MoonLake Immunotherapeutics (MLTX) to Underperform from Outperform with a price target of $2, down from $76, following data from the sonelokimab Phase 3 VELA program in hidradenitis suppurativa, or HS. Even if a path to HS were available, realizing stock value will take too long and will be too tough, the analyst tells investors in a research note. The surprising MoonLake fiasco reminds the firm of Acelyrin’s (SLRN) failure in their HS trial, which grounds its stance that HS must work, Wolfe notes, adding that Acelyrin had aggressively sold off post-HS data and never rebounded, despite similar-to-MoonLake data in PsA and a restructuring to focus on its TED program.