11:31 AM EDT, 09/29/2025 (MT Newswires) -- MoonLake Immunotherapeutics' ( MLTX ) SLK showed limited effectiveness in treating hidradenitis suppurativa which is likely to impact its sales and potential in other competitive markets like psoriatic arthritis, RBC Capital Markets said in a note Monday.

SLK's phase 3 trial in hidradenitis suppurativa produced mixed results, with one study reaching statistical significance and the other narrowly missing, the investment firm said.

Even when combining the studies or using an alternative analysis method, the drug showed modest efficacy, which is weaker than marketed IL-17A/F treatments like bimekizumab, RBC said.

Although the company may still gain approval without further trials, high placebo response in one of the studies and overall low efficacy weaken SLK's commercial outlook, according to the note.

RBC analysts noted that they now see limited acquisition interest, cutting its estimated sale value from $8 billion to possibly $1 billion if regulatory and data conditions go well.

RBC downgraded the stock to sector perform from outperform and reduced its price target to $10 from $67.

Shares of the company were down over 89% in recent trading.

Price: 6.66, Change: -55.34, Percent Change: -89.26