Moonlake shares collapse after mixed trial results for key immune drug

 Moonlake Immunotherapeutics lost over 80% of its market value after its experimental drug sonelokimab delivered underwhelming results in two Phase 3 trials for hidradenitis suppurativa.

Why it matters: The weak data likely derails Moonlake’s ambitions to challenge top-tier immune therapies like Humira, Bimzelx, and Cosentyx, clouding its regulatory path and commercial future.

Backstory: Sonelokimab is designed to block key inflammatory proteins and was promoted as a next-gen treatment for hidradenitis suppurativa. While the first trial collected data that showed the drug demonstrating statistical significance, the second trial failed outright. A result that analysts labeled as “disappointing” and “undifferentiated.”

Big picture: Moonlake had previously positioned sonelokimab as a best-in-class option, even rejecting a buyout offer from Merck. These results now cast serious doubt on its competitiveness and the company’s future pipeline.

Zoom in: The company will still meet regulators to explore potential paths forward, citing overall “clinically meaningful” data despite analyst firm Stifel noting that a “clear path to approval is off the table in the near term.” Reflecting this unfortunate reality, Moonlake’s stock plunged from $62 to under $10 in a single day.