© Reuters. FILE PHOTO: The flag of Switzerland flies over the dome of the parliament building (Bundeshaus), in Bern, Switzerland, October 28, 2020. REUTERS/Arnd Wegmann/File Photo
By David Carnevale
(Reuters) – MoonLake Immunotherapeutics, a developer of antibody-derived therapy for inflammatory skin conditions, is exploring the possibility of a sale, people familiar with the matter said.
The sources said the company, which has a market capitalization of $3.1 billion, is working with an investment bank and is in early talks with pharmaceutical companies interested in a potential takeover.
The sources added that there is no confirmed deal and requested anonymity because the matter is confidential. Spokespeople for MoonLake, which is based in Zug, Switzerland, and is listed on the Nasdaq in New York, did not immediately respond to a request for comment.
Companies focused on immunology have been desirable acquisition targets, as highlighted by recent deals such as Merck & Co’s $10.8 billion acquisition of Prometheus BioSciences Inc and Eli Lilly’s (NYSE:) $2.4 billion purchase of Dice Therapeutics.
MoonLake said on June 25 that new clinical trial data showed its treatment for a skin condition known as hidradenitis suppurativa performed well in late-stage trials, raising the possibility that it will win regulatory approval. Days later, the company announced that it had raised $400 million through a stock sale to further fund development of the drug, which bears the scientific name sonilukimab.
The antibody-derived drug acts as an inhibitor of inflammatory pathways by targeting hard-to-reach tissues. MoonLake is testing Sonelokimab for other inflammatory conditions, including psoriatic arthritis and psoriasis.
If successful, MoonLake will encroach on a market dominated by larger peers such as Novartis AG and Abbvie company (NYSE:). AbbVie’s Humira brings in about $1 billion a year for hidradenitis suppurativa, according to Citigroup (NYSE:) Analysts.
MoonLake was formed in 2021, when Merck KGaA licensed Sonelokimab, which it had developed during the first phase of its clinical development, to a newly created company.
In 2022, MoonLake goes public through a special purpose acquisition company, which has helped it raise over $200 million in cash. Its share price has increased fivefold since it appeared on the market.