MLTX - MoonLake wins bullish view at Cantor on skin disease candidate

• Cantor Fitzgerald launched its coverage on MoonLake Immunotherapeutics ( NASDAQ: MLTX ) with an Overweight recommendation on Tuesday, citing $1.5B potential for Sonelokimab, the company's experimental therapy for skin disease Hidradenitis Suppurativa (HS).
• The analyst Prakhar Agrawal notes that AbbVie's ( ABBV ) blockbuster rheumatoid arthritis therapy Humira is only $1B+ year therapy against HS. According to the analyst, that highlights the unmet medical need and untapped commercial prospects for premium pricing in HS.
• Citing Phase 3 results for rival HS candidates from Novartis ( NVS ) ( OTCPK:NVSEF ) and UCB ( OTCPK:UCBJF ) ( OTCPK:UCBJY ), Agrawal notes that Sonelokimab will be effective against HS, raising the standards due to its mechanism of action.
• Agrawal issues a $23 per share target on the stock, arguing that potential approval of IL-17 injectables from Novartis ( NVS ) and UCB ( OTCPK:UCBJF ) "over the next few years will significantly expand the HS market" propelling Sonelokimab to become" a ~$1.5B drug just in this indication."
• Cowen analyst Phil Nadeau also initiated MoonLake ( MLTX ) with an Outperform rating in July 2022.

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