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Hawk’s Nest

Large Bull Plays Small Biotech as Potential Next M&A Target

by | Jan 30, 2024

MoonLake (MLTX) shares coiled tightly as a strong Biotech seeing 2K Feb. $65 calls adjust to March $65 that open $5.94 while 1250 of the Feb. $50 puts sell to open $1.70 as well. MLTX weekly consolidation with $61.55 a major breakout level, a $3.6B name with 16.7% of the float short trading 7X cash. Citi started shares Buy with a $72 target recently noting MLTX is focused on developing sonelokimab, a nanobody that inhibits both IL17A and IL17F, for the treatment of immunological diseases including hidradenitis suppurativa and psoriatic arthritis. Phase 2 MIRA data for hidradenitis suppurativa appear to demonstrate a compelling efficacy profile for sonelokimab versus competitor IL-17 inhibitors, suggesting potential for best-in-class differentiation. Betaville was out recently suggesting M&A interest in MLTX and Wedbush also seeing it as a takeout candidate as did Stifel note in November.