MLTX Stock Gains 18% as Merck Reportedly Eyes Buyout

Shares of small-biotech MoonLake Immunotherapeutics MLTX rose 18% yesterday following a report issued by the Financial Times (FT), which stated that pharma giant Merck MRK is interested in acquiring the company.Per the article, Merck had submitted a non-binding offer for MoonLake earlier this year in a deal valued at more than $3 billion. Though this offer was rejected, the FT stated that the talks could be revived and other suitors may express interest in acquiring MLTX. Both Merck and MoonLake have declined to comment on the rumor.Swiss-based MoonLake Immunotherapeutics is a clinical-stage company developing its lead pipeline asset, sonelokimab, for the treatment of inflammatory diseases. The drug is a novel nanobody therapy being developed in late-stage studies for hidradenitis suppurativa (HS) and psoriatic arthritis (PsA) indications. Topline data from the HS study is expected around September 2025.MoonLake is also developing sonelokimab for other indications in dermatology and rheumatology, including palmo-plantar pustulosis (PPP) and axial spondyloarthritis (axSpA).MLTX Share Price PerformanceYear to date, the stock has lost 10% compared with the industry’s 4% decline.Image Source: Zacks Investment ResearchWhat’s Driving Merck’s Reported Interest in MoonLake?The idea behind the deal is clear — Merck aims to diversify its current revenue base, which has become highly dependent on Keytruda. In 2024, the company generated nearly 46% of its total revenues from the drug’s sales. With concerns over Keytruda’s potential loss of exclusivity (LOE) after 2028, MRK remains under pressure from the investor community to pursue deals for new drugs that could help reduce its dependence on a single product for growth.In the past year, Merck has been tapping Chinese biotechs for licensing deals. Toward the end of last year, the company struck multi-billion-dollar deals with Hansoh Pharma, LaNova Medicines and Hengrui Pharma. While the Hansoh deal added the investigational oral GLP-1 receptor agonist HS-10535 to Merck’s pipeline, the LaNova deal added the experimental bispecific VEGF/PD-1 antibody LM-299. With the Hengrui Pharma deal, Merck acquired rights to an investigational oral small-molecule lipoprotein(a) inhibitor, HRS-5346.Recent M&A Transactions in the Pharma SpaceWhile broader macroeconomic concerns — including Trump-era tariffs and leadership shifts at the FDA — have weighed on deal-making in 2025, Big Pharma continues to pursue strategic assets in key growth areas.This week, Sanofi SNY announced a $9.5 billion acquisition of Blueprint Medicines to strengthen its immunology pipeline and reduce reliance on blockbuster drug Dupixent. Through this transaction, Sanofi intends to add Ayvakit — an inhibitor of KIT and PDGFRA proteins with growing commercial traction — and several early-stage pipeline assets focused on systemic mastocytosis (SM). Sanofi expects to close this deal in the third quarter of 2025.In parallel, Bristol Myers Squibb BMY signed a co-development and commercialization agreement with BioNTech for BNT327, an investigational bispecific antibody targeting PD-L1 and VEGF. The deal gives Bristol Myers access to a promising oncology candidate across multiple tumor types, aligning with its strategy to offset revenue declines from legacy brands.These transactions highlight the industry's ongoing interest in targeted immunology and oncology platforms — the same areas MoonLake’s sonelokimab is exploring. Merck’s rumored pursuit of MoonLake fits this trend, signaling that small biotechs with promising assets remain top M&A targets for Big Pharma.MoonLake Immunotherapeutics Price  MoonLake Immunotherapeutics price | MoonLake Immunotherapeutics QuoteMLTX’s Zacks RankMoonLake currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanofi (SNY): Free Stock Analysis Report Bristol Myers Squibb Company (BMY): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report MoonLake Immunotherapeutics (MLTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks