MoonLake Stock Surges Amid Merck's $3B+ Buyout Proposal
Deal News | Jun 08, 2025 | EIN
Merck & Co., the global pharma giant, is rumored to have made a buyout offer exceeding $3 billion to MoonLake Immunotherapeutics, a Switzerland-based biotech firm. This news led to a significant stock surge for MoonLake, rising by 31%. The acquisition interest comes amid Merck's strategic push to expand through M&A despite a challenging economic climate affecting the pharmaceutical sector. MoonLake is noted for its innovative drug, sonelokimab, which is undergoing several Phase III trials for conditions like hidradenitis suppurativa and psoriatic arthritis. Analysts suggest the buyout wouldn't likely be finalized before September, as crucial trial data is expected then. Merck's interest is driven by the potential burgeoning market for HS treatments, which could grow significantly by 2035, filling revenue gaps as patents on its blockbuster drugs expire. Additionally, Merck's recent smaller acquisitions underscore its intent to counteract potential losses with strategic expansions.
Sectors
- Biotechnology
- Pharmaceuticals
- Healthcare
Geography
- United States – Merck is headquartered in the United States and plays a significant role in the pharmaceutical market there.
- Switzerland – MoonLake Immunotherapeutics is based in Switzerland, highlighting its geographical relevance.
Industry
- Biotechnology – MoonLake is a biotechnology company focused on developing innovative therapies for inflammatory diseases, underlining its relevance in this industry.
- Pharmaceuticals – Merck's interest in acquiring MoonLake aligns with its strategy to expand its pharmaceutical portfolio amid patent expirations.
- Healthcare – The development and acquisition of drugs like sonelokimab fall under the broader healthcare industry, impacting treatment options for diseases.
Financials
- $3 billion+ – The rumored acquisition offer by Merck for MoonLake Immunotherapeutics.
- $3.2 billion – Current market capitalization of MoonLake, influencing acquisition negotiations.
- $4 billion+ – Projected peak sales of MoonLake's drug, sonelokimab, according to TD Cowen.
- $350 million – Milestone payments agreed by MoonLake to Merck for drug licensing.
- $8 million – Amount recognized as R&D expenses by MoonLake as of end 2024.
- $10 billion to $15 billion – Projected growth of the HS biologic treatment market by 2035.
- $29.482 billion – Sales achieved by Merck's top-selling drug, Keytruda, last year.
- $8.583 billion – Sales achieved by Merck's Gardasil/Gardasil 9 last year.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Merck & Co. | Potential Buyer | Company | A leading global healthcare company, rumored to offer over $3 billion to acquire MoonLake Immunotherapeutics. |
| MoonLake Immunotherapeutics | Target Company | Company | A Swiss biotech firm focused on therapies for inflammatory diseases, currently trading with a market cap around $3.2 billion. |
| Edward Nash | Biotechnology Senior Analyst | Person | Senior analyst at Canaccord Genuity, providing insights into the valuation and market expectations for MoonLake. |
| Brian Abrahams | Managing Director, Biotechnology Research | Person | A director at RBC Capital Markets commenting on the competitive landscape and MoonLake's potential. |
| Jorge Santos da Silva | CEO | Person | Founder and CEO of MoonLake, previously partnered with consulting firm McKinsey & Co. |
| RBC Capital Markets | Financial Analyst | Company | Provided analysis on the potential acquisition timeline and market impact of MoonLake's drug developments. |
| TD Cowen | Financial Analyst | Company | Offers market analysis and sales forecasts related to MoonLake's drug sales potential. |