Goldman Sachs Notes VELA-2 Failure, Calls MoonLake Immunotherapeutics (MLTX) a High-Risk Play

Company Overview - MoonLake Immunotherapeutics (NASDAQ: MLTX) is a clinical-stage biopharmaceutical company focused on developing innovative Nanobody therapies for inflammatory skin and joint diseases. Its main asset, sonelokimab, targets IL-17A and IL-17F to alleviate inflammation in conditions such as hidradenitis suppurativa and psoriatic arthritis [4]. Analyst Ratings - Goldman Sachs downgraded MLTX from Neutral to Sell, raising the price target to $10 from $8. The firm highlighted the advancement of sonelokimab into Phase 3 for palmoplantar pustulosis as a potential opportunity but expressed concerns about significant approvability risks in hidradenitis suppurativa due to the failure of VELA-2 to meet its primary endpoint [2]. - H.C. Wainwright increased the price target for MoonLake Immunotherapeutics to $32 from $26 while maintaining a Buy rating, noting that the outcome of the FDA Type B meeting provides a clear path toward regulatory registration [3]. Investment Considerations - While there is potential for MLTX as an investment, some analysts believe that certain AI stocks present greater upside potential with less downside risk [5].