Last week was a tough one for the Nasdaq Composite (^IXIC 2.02%), but after several weeks of upward moves, it wasn't surprising to see what some are calling a new bull market take a brief pause. Futures on the Nasdaq were down very modestly early Monday morning before the market opened for regular trading.
There were some big positive movers on the Nasdaq, though, and Lucid Group (LCID 0.41%) was one of the most prominent. Yet as much as electric car enthusiasts might appreciate the deal that Lucid just made, the boost in its stock paled in comparison to the much larger gains from small biotech company MoonLake Immunotherapeutics (MLTX 0.57%). Below, you'll get the scoop on both stocks and why they're moving higher Monday morning.
Lucid charges up
Shares of Lucid Group were up nearly 10% Monday morning. The electric vehicle (EV) maker announced a key deal that could help it compete more effectively against rivals in the fast-paced industry while also diversifying its revenue base.
Lucid entered into an agreement with iconic U.K. automaker Aston Martin. The two car companies will establish a long-term strategic technology partnership under the deal, with the idea of Lucid helping Aston Martin move more quickly toward establishing an electrification strategy to bolster its prospects for growth. Aston Martin will get access to Lucid's electric powertrain technology to power future Aston Martin vehicles. In addition, Lucid will offer technical support to Aston Martin to help with its EV development efforts, along with supplies of key components that Lucid makes in-house.
For Aston Martin, the partnership is the result of a search for a strategic partner that could help it accelerate its move into the EV market. The British automaker said it picked Lucid in a competitive process, offering a vote of confidence in Lucid's high-performance advanced electric powertrain technology.
Meanwhile, Lucid will benefit from cash payments from Aston Martin, and it will also receive Aston Martin shares as part of the consideration for the deal. The U.S. automaker characterized the agreement as a landmark for its technology arm, suggesting that tech-sharing arrangements with other automakers might be in the offing over the long run.
MoonLake makes a big move
For those seeking larger share price gains, though, MoonLake Immunotherapeutics was the clear winner. Shares more than doubled in premarket trading Monday following clinical trial results from the Swiss biotech company.
MoonLake reported positive top-line results from its global phase 2 trial of sonelokimab, which is the primary candidate treatment in its pipeline. The Mira trial looked at 234 patients suffering from a chronic skin disorder called hidradenitis suppurativa (HS), and it achieved its primary endpoint of seeing a significantly higher percentage of trial participants achieving a key clinical response threshold. The results suggested that it took as little as 12 weeks for sonelokimab to have the highest level of clinical activity compared to other therapies.
Sonelokimab had already performed well in phase 2 trials of psoriasis patients, and the strong results from HS patients using a 120 milligram dose matched up well with the results in those suffering from psoriasis. The treatment uses antibodies that are substantially smaller those traditionally used, and that could have implications far beyond this particular indication.
MoonLake also hopes to test sonelokimab in patients suffering from psoriatic arthritis. But with the treatment ready for a potential phase 3 trial for psoriasis patients, that'll likely be the first indication that sets the biotech up for regulatory approval from the U.S. Food and Drug Administration if MoonLake is successful.
