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Barclays initiated coverage of Moonlake Immunotherapeutics (NASDAQ:MLTX) with an equal weight rating, stating that the stock’s value hinges in part on the biotech’s ability to differentiate its drug candidate sonelokimab, or SLK, from a competing product.
The investment bank said that while it believes SLK shows promise in treating the skin condition hidradenitis suppurativa, or HS, MLTX’s value is largely tied to how much it can be differentiated from UCB’s bimekizumab, also known as bime.
MLTX’s value also hinges on the size of the underlying HS market and the opportunity to expand into other indications such as psoriatic arthritis, or PsA, Barclays added.
Barclays said that its $28 price target is based in part on SLK launching in 2028, with peak sales for HS of $1.6B in the US in 2035 and $313M outside the US in 2034. It also assumes a 2028 US and 2029 ex-US launch of the product for PsA, with peak sales of $671M in the US and $156M outside the US in 2035.
The bank views the probability of SLK getting approved for HS and PsA at 75%, respectively.
More on Moonlake:
MoonLake Immunotherapeutics GAAP EPS of -$0.23
MoonLake Immunotherapeutics a new buy at Guggenheim on sonelokimab
