MoonLake Stock Soars As Biotech Fund Reloads, Takeover Chatter Ignites

Optimism also grew around FDA momentum for its palmoplantar pustulosis drug ahead of MoonLake’s Feb. 23 investor day.

• Biotech-focused investor Cormorant Asset Management rebuilt its stake above 6% on Tuesday.
• Cormorant disclosed ownership of 4.36 million shares, up from about 2 million shares in October.
• Retail sentiment flipped to ‘extremely bullish’ from ‘extremely bearish’ on Stocktwits, and message volume surged more than 900%.

Shares of MoonLake Immunotherapeutics, Inc. jumped 11% on Tuesday, marking the stock’s biggest rally in over a month, after a biotech-focused investment firm rebuilt its stake amid heightened buzz among retail traders speculating a possible takeover.

Cormorant Lifts MoonLake Stake Above 6%

A Schedule 13G filing on Tuesday showed Cormorant Asset Management reported ownership of 4.36 million Class A ordinary shares in MoonLake Immunotherapeutics, representing a 6.1% stake as of Dec. 31, 2025. The stake increased from about 2 million shares, or 3.14%, disclosed in October 2025 filings, after the firm had previously reduced its position below the 5% reporting threshold.

Cormorant Asset Management is a biotech-specialised investment management firm with stakes in Praxis Precision Medicines, BridgeBio Oncology Therapeutics, Edgewise Therapeutics, and Metsera, which was acquired last year by Pfizer, among others.

According to data from Quiver Quantitative, the firm reported holdings in 43 stocks as of Sept. 30, 2025, with an estimated portfolio value of about $1.45 billion.

FDA Momentum Builds Around Sonelokimab

Earlier this month, the U.S. Food and Drug Administration (FDA) granted Fast Track designation to the company’s lead investigational therapy, Sonelokimab, for moderate-to-severe palmoplantar pustulosis. The company plans to pursue a biologics license application for Sonelokimab in hidradenitis suppurativa in the second half of 2026.

Last month, MoonLake said a Type B meeting with the FDA confirmed its clinical evidence strategy for Sonelokimab in hidradenitis suppurativa. Following that update, several brokerages raised price targets or upgraded the stock, though Goldman Sachs downgraded MoonLake to ‘Sell’ last month, citing “high risk” around approvability in hidradenitis suppurativa.

The company is scheduled to host an investor day on Feb. 23, at which it plans to provide updates on the clinical development and regulatory pathway for Sonelokimab across multiple inflammatory disease indications.

Stocktwits Buzz Erupts Around MLTX

On Stocktwits, retail sentiment for MLTX flipped to ‘extremely bullish’ from ‘extremely bearish’ over the past day amid over a 900% surge in 24-hour message volume.

One user said the Cormorant filing has “fundamentally broken” the short thesis. “Cormorant—who knows the science better than anyone—just admitted the "Bear Thesis" was wrong by buying back in at $12-$16.”

Another user said, “I can’t stop thinking that we get a PR of some sort, even a little teaser, PM tomorrow AM” ahead of the company’s investor day.

A third user said, “I have to say that something may be coming..This price action today was solid coupled with the high after hours volume. Someone is accumulating.”

A separate user said they were watching for either a buyout announcement or positive regulatory news this week, while another argued MoonLake would need to trade higher before attracting interest from a large pharmaceutical acquirer.

One user pointed to recent travel activity involving Merck’s corporate jet, hinting at a potential takeover by the big pharma firm and noted multiple trips to Zurich, where MoonLake is headquartered. 

MLTX stock has risen 33% so far this year.

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