Moonlake Announces $250 Million Public Offering

Moonlake Immunotherapeutics has announced it intends to raise capital by initiating a public offering of $250 million of its shares. The announcement follows the positive results of their phase 2 trial of Sonelokimab, a drug candidate for the treatment of Hidradenitis Suppurativa (HS). 

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Details on Moonlake’s Public Offering 

The Switzerland-based clinical-stage biotechnology company first went public in 2021 through a merger with Helix Acquisition, a special purpose acquisition company (SPAC). On June 26, Moonlake disclosed its plan to initiate an underwritten public offering of $250 million worth of its Class A shares. The offering is being underwritten by SVB Securities, Cantor and LifeSci Capital, and Guggenheim Securities. 

Furthermore, Moonlake will be offering their underwriters the option of purchasing up to an additional $37.5 million in shares for a period of 30 days. It is important to note that all securities are being offered by Moonlake. In addition, the company intends to use the raised capital from the offering in conjunction with its existing cash to continue the advancement of Sonelokimab and for other general corporate purposes. 

Promising Inflammation Drug 

The company is focused on the treatment of inflammatory diseases with unmet medical needs, like Psoriasis. They are developing Sonelokimab, a nanobody therapy currently in phase 2 trials for the treatment of Psoriasis, Hidradenitis Suppurativa (HS), and Psoriatic Arthritis (PsA). Nanobodies are made up of one or more domains modeled after the variable domains of heavy-chain-only antibodies (VHH). Consequently, this therapy has many advantages, among them its small size, resistance to temperature changes, enhanced tissue penetration, and the ability to create customized molecules that target specific combinations.  

Moonlake’s Sonelokimab is an inhibitor that targets the IL-17 pathway. This pathway plays a key role in the pathogenesis of inflammatory diseases. Sonelokimab consists of three VHH domains, two of which selectively bind to IL-17A and IL-17F. This binding inhibits dimers that are central drivers of inflammatory disease. The therapy shows promising results in its phase 2 trials for the treatment of Hidradentitis Suppurativa (HS). The company is also conducting clinical trials for Sonelokimab’s use in the treatment of Psoriatic Arthritis (PsA) and Psoriasis. 

Improving Patient Outcomes 

Moonlake aims to transform the treatment outcome for patients facing chronic inflammatory diseases. The use of nanobodies in Sonelokimab improves the efficacy and specificity of the therapy. Therefore allowing Sonelokimab to be more effective at targeting inflammation and penetrating inflamed tissue. It has the potential to improve patient outcomes and revolutionize immunotherapy.

Author

GeneOnline Team

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