MoonLake Immunotherapeutics (NASDAQ:MLTX) shares are up during Monday’s premarket session following the announcement of positive topline results from its Phase 2 clinical trial of sonelokimab in treating axial spondyloarthritis.
Axial Spondyloarthritis is a chronic, immune-mediated inflammatory disease mainly affecting the spine and sacroiliac joints, often causing chronic back pain, stiffness, and potential spinal fusion.
Chronic Back Pain Study
In the Phase 2 S-OLARIS trial, 81% of patients treated with sonelokimab achieved a clinically meaningful response at Week 12, demonstrating significant improvement in key disease parameters.
The trial also confirmed the drug’s ability to reduce inflammation and osteoblast activity in affected joints, suggesting a rapid onset of action and potential for effective treatment in chronic rheumatological conditions.
As a biomarker-controlled trial, S-OLARIS data showed sonelokimab reduced the levels of key inflammatory mediators in axial spondyloarthritis, in peripheral blood and biopsy samples from patients – the safety profile of sonelokimab was similar to other trials and no new signals were detected.
Additionally, the safety profile of sonelokimab remained consistent with previous trials, with no new safety signals detected.
Cash Position
MoonLake ended the fourth quarter with $394 million in cash, cash equivalents, and short-term marketable debt securities, which, together with funds from its latest equity raise (gross proceeds of $75 million), are expected to provide a cash runway into the second half of 2027.
The company also amended its debt facility with Hercules Capital, with a concurrent drawdown of $25 million, and up to $400 million in non-dilutive funds remaining available to support future funding needs.
In January, MoonLake Immunotherapeutics received U.S. Food and Drug Administration (FDA) feedback regarding the clinical evidence strategy for Sonelokimab (SLK) in Hidradenitis Suppurativa (HS), based on the Type B meeting requested by MoonLake.
Technical Analysis
The stock is currently trading 9.8% below its 20-day simple moving average (SMA) and 4.1% below its 100-day SMA, indicating some short-term weakness. Over the past 12 months, shares have decreased significantly and are currently positioned closer to their 52-week lows than highs.
The RSI is at 44.45, which is considered neutral territory, while the MACD is not available for analysis. The lack of a clear MACD signal suggests that traders should be cautious as the stock navigates its current technical landscape.
- Key Resistance: $20.00
- Key Support: $15.00
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $40.00. Recent analyst moves include:
- RBC Capital: Sector Perform (Raises Target to $12.00) (Feb. 20)
- BTIG: Buy (Maintains Target to $24.00) (Feb. 9)
- HC Wainwright & Co.: Buy (Maintains Target to $32.00) (Feb. 3)
MLTX Price Action: MoonLake shares are climbing, up 9.70% to $20.59 in premarket trading on Monday. The stock is 67.2% below its 52-week high, according to Benzinga Pro data.
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