MoonLake Immunotherapeutics explores sale-sources

Dice Therapeutics

14/07/2023 22:23

(Adds share reaction)
    By David  Carnevali
       July 14 (Reuters) - MoonLake Immunotherapeutics
 MLTX.O , a developer of an antibody-derived treatment for
inflammatory skin conditions, is exploring a sale, according to
people familiar with the matter.
    The company is working with an investment bank and is having
early-stage conversations with drugmakers interested in a
potential acquisition, the sources said.
    The sources added that no deal is certain and asked not to
be identified because the matter is confidential. Spokespeople
for MoonLake, which is based in Zug, Switzerland, and is listed
on the Nasdaq stock exchange in New York, did not respond
immediately to a request for comment.
    MoonLake's shares ended trading up 8.4% at $54.27 on the
news on Friday, giving the company a market value of $3.3
billion.
    Immunology-focused companies have been coveted acquisition
targets, as highlighted by recent deals such as Merck & Co's
 MRK.N  $10.8 billion acquisition of Prometheus BioSciences Inc
 RXDX.O  and Eli Lilly's  LLY.N  $2.4 billion purchase of Dice
Therapeutics  DICE.O . 
    MoonLake said on June 25 that new clinical trial data showed
its treatment for a skin condition known as hidradenitis
suppurativa performed well in a late-stage trial, making it more
likely that it will secure regulatory approval. Days later, the
company announced it had raised $400 million through a stock
sale to further fund the development of the medicine, which goes
by the scientific name of Sonelokimab.
    The antibody-derived drug acts as an inhibitor of 
inflammatory pathways by targeting hard-to-reach tissues.
MoonLake is testing Sonelokimab for the treatment of other
inflammatory conditions, including psoriatic arthritis and
psoriasis. 
    If successful, MoonLake would encroach on a market dominated
by bigger peers such as Novartis AG  NOVN.S  and AbbVie Inc
 ABBV.N . AbbVie's Humira generates around $1 billion annually
for the treatment of hidradenitis suppurativa, according to
Citigroup analysts.  
    MoonLake was formed in 2021, when Merck KGaA  MRCG.DE 
licensed Sonelokimab, which it had developed through the first
stage of its clinical development, to a newly created company.
    In 2022, MoonLake went public through a merger with a
special purpose acquisition company, which helped it raise more
than $200 million in cash. Its share price has increased
fivefold since its market debut.

 (Reporting by David Carnevali in New York; Editing by Josie
Kao)
 ((David.Carnevali@thomsonreuters.com;))