Why Former Highflier MoonLake Plummeted 21% After A Recent Run

MoonLake Immunotherapeutics (MLTX) reported mixed results in the testing of its psoriatic arthritis treatment. The company tested its drug, sonelokimab, on 207 patients and found statistically significant improvements after 12 weeks of treatment compared to a placebo and AbbVie’s Humira. However, there was an unexpectedly high placebo response, leading to a drop in MLTX stock. Analysts note that while the placebo response rates are a concern, the absolute response rates and comparison to Humira are compelling. MoonLake’s drug showed the highest response rates among competing agents. The company also found that patients who received a lower dose without induction did not show significant improvements. Analysts believe that sonelokimab has the potential to address multiple diseases similar to psoriatic arthritis.