MoonLake's skin disease lead drug offers better safety than rivals- Jefferies

MoonLake Immunotherapeutics

11/11/2022 12:39

** Jefferies initiates coverage for Swiss biotech firm
MoonLake Immunotherapeutics  MLTX.O  with "buy" rating and $16
PT 
    ** Brokerage optimistic about co's lead drug candidate,
sonelokimab (SLK) for treating autoimmune diseases 
    ** Says SLK has potentially stronger clinical benefit vs
expensive IL-17 inhibitors in the market for skin disease
treatment
    ** SLK's shorter half-life and deeper-tissue penetration
provide rationales for better safety and efficacy than
Belgium-based Ucb SA's  UCB.BR  Bimzelx - Jefferies 
    ** SLK's mid-stage trial in Psoriatic Arthritis (PsA), data
expected in 2023 year-end or early 2024, could have higher
safety and efficacy vs current treatments - Brokerage
    ** Sees peak sales of $440 mln for SLK in PsA market, if
approved 
    ** SLK's another trial currently in mid-stage for
hidradenitis suppurativa (HS) treatment also has a substantial
market opportunity; Study data expected in mid-2023
    ** HS is a chronic skin condition resulting in irreversible
tissue destruction 
    ** Stock was down 16.2% YTD, as of last close 
 (Reporting by Pratik Jain)
 ((Pratik.Jain@thomsonreuters.com;))