Merck Speculation Lifts MLTX Stock Amid Buyout Rumors

MoonLake Therapeutics (MLTX) stock surged 11% in regular trading session after retail investors speculated about a potential buyout from pharma giant Merck.

The optimism is based on Merck's efforts to fortify its drug portfolio before its blockbuster cancer therapy Keytruda loses patent protection in 2028. Keytruda generated $29.5 billion in global sales for the full year 2024, accounting for about 46% of the company's overall worldwide sales.

MoonLake is developing an investigational therapy called sonelokimab for the treatment of inflammatory diseases such as hidradenitis suppurativa and psoriatic arthritis. The FDA granted Fast Track designation to sonelokimab in moderate-to-severe palmoplantar pustulosis earlier this month.

Some Stocktwits users voiced optimism for a buyout announcement or positive news from the U.S. Food and Drug Administration this week, while another user cautioned that MoonLake must increase its share price if it wants to be acquired. Merck has been seeking to maintain revenue momentum by acquiring companies, including Cidara Therapeutics and Verona Pharma.