Biotech action MoonLake Immunotherapy (MLTX) soared on Monday after the company said it set a new bar in the treatment of a painful skin condition.
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The company hopes to treat hidradenitis suppurativa, a condition that causes painful lumps to form under the skin. If successful, he will encounter AbbVie (ABBV) the blockbuster Humira.
After 12 weeks, a statistically significant portion of patients who received MoonLake’s drug showed at least a 75% reduction in abscesses under the skin. There were no new safety issues in the Phase 2 study, MoonLake said in a press release.
In morning trading in the stock market today, shares of MoonLake soared 54.1% near 39.90.
Biotech Stock Reaches All-Time High
MoonLake tested two doses of her drug, known as sonelokimab. After about three months, the low dose outperformed the placebo by 29 percentage points. On a scale that measures a 50% reduction in abscesses, the same dose outperformed the placebo by 38 percentage points, MoonLake said.
“The results suggest that, as of week 12, (drug) sonelokimab, compared to placebo, achieves the highest clinical activity among all other therapies tested in equally stringent (pivotal studies),” MoonLake said. in a press release.
Additionally, sonelokimab has shown promise for other secondary measures.
The news sent biotech stock MoonLake to an all-time high.
The biotech stock has a perfect relative strength rating of 99, meaning the stock has outperformed 99% of the market in 12-month performance, according to IBD Digital.
Mutual funds picked up most of MoonLake’s shares, comprising 97% of its shares. Institutional support is a bullish sign. Additionally, the number of funds that hold the biotech stock has increased over the past four quarters.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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