MoonLake Immunotherapeutics (NASDAQ: MLTX) is a Swiss biotech company. Its focus is on Sonelokimab, a novel nanobody used to treat inflammation. The company aims to improve outcomes for patients. It has customers all over the world. Its stock has been one of the best performing in 2023.
MoonLake Immunotherapeutics Stock Performance
MLTX is up 315.87% year-to-date. The stock has risen by 399.68% in the past 12 months. In late June, the company’s stock rose by 102% in minutes during morning trading on Monday, June 26, 2023. The rise was followed by another 67% during afternoon trading on the same day. Its rise was due to positive results posted by the company on that day before the market opened.
According to a phase 2 trial posted at the time, the company stated that patients treated for hidradenitis suppurative (HS), a skin condition, using Sonelokimab had shown great results compared to existing therapies. It was noted that the market for HS treatment is $10 billion.
On Monday, November 6, 2023, the stock tumbled 20%. The unexpected drop came after the company posted the phase 2 trial results for psoriatic arthritis on that day. Investors reacted to the trial results, which showed a higher-than-expected response in the placebo group.
Quarterly Financial Report
In its latest Q3 quarterly financial report, MoonLake Immunotherapeutics reported $496 million in cash, a slight decline from the $501.8 million it reported in Q2. The company’s CFO stated that they have a slower cash burn rate than the competition. He also stated that the current cash holdings were enough to see them through phase 3 trials, which will occur in 2024.
Why is MLTX Stock Rising?
MoonLake is a clinical-stage biotech firm. Thus far, its products have yet to receive approval. However, its clinical trials have shown promising results in treating HS, a sector currently valued at around $10 billion. Consequently, that makes MoonLake a prime candidate for a buyout. While it does not have any profits or revenue yet, a buyout would propel the value of the stock.
MoonLake Stock Forecast
MoonLake Stock is worth $ 46.54 per share as of November 24, 2023, during morning trading. It has gained 1.84% thus far. However, the stock’s value could drop as some of the investors look to take profit from what has been a highly successful investment. Most investors will likely hold onto the stock as they await the outcome of phase 3 trials in 2024. If those performed well, MLTX stock could rise further.
Based on the current performance and the positive result from its trials, investors give MLTX stock a strong buy rating. They expect the stock to outperform the stock market in 2024. Its high price target is $92, and the low is $36. The average price target of $70.88 is an upside of 52.46% based on the current price.
Should You Buy MLTX Stock?
MoonLake Immunotherapeutics (MLTX) has seen triple-digit gains in 2023. While it is unlikely to see such huge gains in 2024, stock analysts are still expecting double-digit growth for the stock. The company has a lot riding on Sonelokimab, which has proven quite successful thus far. Consequently, the strong buy rating accurately represents MoonLake’s predicted value.
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