This Fund Bought $28 Million of a Beaten-Down Immunotherapy Stock Last Quarter. What Should Long-Term Investors Know?

Cormorant Asset Management disclosed a buy of 2,361,260 shares of MoonLake Immunotherapeutics (MLTX 2.33%) in its February 17, 2026 SEC filing, an estimated $27.86 million trade based on quarterly average pricing.

What happened

According to a SEC filing dated February 17, 2026, Cormorant Asset Management increased its stake in MoonLake Immunotherapeutics (MLTX 2.33%) by 2,361,260 shares during the fourth quarter. The estimated transaction value, based on the period’s average closing price, was $27.86 million. The quarter-end value of the position increased by $43.11 million, a figure that includes both additional shares and changes in the share price.

What else to know

• This was a buy, lifting MoonLake Immunotherapeutics to 2.65% of Cormorant Asset Management, LP’s reportable U.S. equities as of December 31, 2025.
• Top five holdings after the filing:
  • NASDAQ:PRAX: $280.00 million (15.9% of AUM)
  • NASDAQ:BBOT: $223.84 million (12.7% of AUM)
  • NASDAQ:ABVX: $182.05 million (10.3% of AUM)
  • NASDAQ:EYPT: $151.00 million (8.6% of AUM)
  • NASDAQ:RAPP: $91.85 million (5.2% of AUM)
• As of February 17, 2026, shares of MoonLake Immunotherapeutics were priced at $17.52, down nearly 60% over the past year and well underperforming the S&P 500’s roughly 19% gain in the same period.

Company overview

Company snapshot

• MoonLake Immunotherapeutics develops clinical-stage therapies, with a primary focus on Sonelokimab, an investigational Nanobody therapy targeting inflammatory diseases.
• The firm operates a research-driven business model, generating value through the advancement of novel biologic drug candidates in trials for dermatological and rheumatological indications.
• It serves biopharmaceutical markets, targeting healthcare providers and patients affected by chronic inflammatory conditions such as hidradenitis suppurativa and psoriatic arthritis.

MoonLake Immunotherapeutics is a clinical-stage biotechnology company specializing in the development of next-generation therapies for inflammatory diseases. The company leverages proprietary Nanobody technology to address significant unmet medical needs in dermatology and rheumatology. With a focused pipeline and ongoing clinical trials, MoonLake aims to establish a competitive position in the biopharmaceutical sector through innovative science and targeted indications.

What this transaction means for investors

MoonLake Immunotherapeutics’ stock suffered a steep nearly 90% drop in a single day this past September after mixed Phase 3 results surfaced for its investigational nanobody, sonelokimab. That means Cormorant stepped in with that disappointment well priced in during the fourth quarter, and it might be because, under the hood, MoonLake’s lead drug candidate continues to advance through clinical development.

Early clinical data have shown encouraging activity, and recent trial results in axial spondyloarthritis added another potential indication for the therapy. If later-stage studies confirm these findings, the drug could compete in large and rapidly expanding immunology markets.

Financially, MoonLake remains a typical clinical-stage biotech. The company reported fourth-quarter R&D of $56 million and additional administrative expenses of $9.2 million as it continued funding research and clinical trials, ending the year with about $394 million in cash and equivalents, enough to fund operations into the second half of next year. Ultimately, it seems that the steep stock crash in September may have provided an attractive entry point, at least according to Cormorant’s move here.