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MoonLake Immunotherapeutics (MLTX) Valuation After Class Action Lawsuits and Sonelokimab Trial Setbacks

Simply Wall St · 2d ago

MoonLake Immunotherapeutics (MLTX) is back in focus after multiple law firms launched securities class actions, alleging the company overstated sonelokimab’s benefits and downplayed weaker Phase 3 results, unsettling already pressured shareholders.

See our latest analysis for MoonLake Immunotherapeutics.

That backdrop helps explain why, despite a sharp 1 month share price return of 41.6 percent and a 12.3 percent jump in the last session to around 14.99 dollars, the 1 year total shareholder return is still down about 72 percent. At the same time, the 3 year total shareholder return remains solidly positive, suggesting recent legal and trial setbacks have dented momentum rather than erased the longer term story.

If you are reassessing risk after MoonLake’s volatility, it could be a smart moment to explore other healthcare stocks that might offer a different balance of growth potential and downside risk.

With shares still deeply underwater over 12 months and now trading just above the latest analyst targets, investors face a key question: Is MoonLake quietly undervalued after the selloff, or is the market correctly discounting future growth?

Price to Book of 3.7x: Is it justified?

Based on MoonLake Immunotherapeutics recent price to book ratio of 3.7 times and last close of 14.99 dollars, the stock screens as expensive versus peers.

The price to book ratio compares a company market value to its net assets, a common yardstick for early stage or unprofitable biotechs where earnings are not yet meaningful. For MoonLake, this lens matters because the business currently generates no revenue and remains loss making, so investors are effectively paying for its pipeline, intellectual property and balance sheet strength rather than cash flows.

However, statements flag that MoonLake trades at 3.7 times book value compared both to a 2.1 times peer average and a 2.7 times US biotech industry average, suggesting the market is assigning a premium despite persistent losses and forecasts that it will stay unprofitable over the next three years. With no DCF fair value available and insufficient data for a price to book fair ratio, there is no offsetting signal that this premium is aligned with a statistically derived fair level; the valuation looks stretched on this metric alone.

Compared with the wider US Biotechs industry, MoonLake price to book multiple stands out as materially richer. This indicates that investors are paying significantly more per dollar of net assets than they would for a typical biotech name, even though the company has no revenue and is expected to remain in the red.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price to book of 3.7x (OVERVALUED)

However, significant clinical trial uncertainty and the overhang from class action lawsuits could quickly challenge any optimistic recovery narrative around MoonLake’s valuation.

Find out about the key risks to this MoonLake Immunotherapeutics narrative.

Build Your Own MoonLake Immunotherapeutics Narrative

If you see things differently or want to dig into the numbers yourself, you can build a complete view in just a few minutes: Do it your way.

A great starting point for your MoonLake Immunotherapeutics research is our analysis highlighting 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.