aibioMoonLake amends Hercules loan, draws $25.0 million and keeps up to $400.0 million in later tranches
Tickers MLTX
MoonLake drew $25.0 million under a Hercules loan totaling $500.0 million across six tranches. Most of the tranches still to come depend on Phase 3 results and FDA action for its lead drug, sonelokimab, and the company's 81% response figure comes from 26 patients with no comparison arm reported.
Key facts
- Company
- MoonLake Immunotherapeutics (NASDAQ: MLTX)
- News type
- Debt Financing
- Primary source
- MoonLake Immunotherapeutics Form 8-K filed February 23, 2026 (SEC EDGAR)
MoonLake Immunotherapeutics (Nasdaq: MLTX) amended its loan with Hercules Capital, Inc. on February 20, 2026, and drew $25.0 million the same day. The Form 8-K filed February 23, 2026 describes the first amendment to the loan and security agreement, which changes the available tranches, milestone dates and financial covenants.
The loan and its lenders
MoonLake signed as a guarantor. Its subsidiary, MoonLake Immunotherapeutics AG, is the borrower. Hercules Capital, Inc. is administrative agent and collateral agent for itself and the lenders, and the 8-K does not name the individual lenders. The amended agreement provides six senior secured term loan tranches totaling $500.0 million.
The first tranche of $75.0 million was funded on March 31, 2025, and the second, of $25.0 million, on the amendment closing date. The company's 2024 annual report describes MoonLake as a single-asset company focused on sonelokimab (SLK), a tri-specific IL-17A and IL-17F inhibiting Nanobody. The same report counts more than 700 patients in completed SLK-related trials.
The remaining tranches
The third tranche of up to $50.0 million becomes available if the company announces that the IZAR-1 and IZAR-2 Phase 3 studies in active psoriatic arthritis each met their protocol-specified primary endpoint and that the data support its planned commercialization. It can be drawn until the earlier of 60 days after that date and March 15, 2027.
The fourth tranche of up to $50.0 million requires the VELA-1 and VELA-2 Phase 3 studies in moderate to severe hidradenitis suppurativa (HS) to each show clinically meaningful improvements across 52-week endpoints with an acceptable safety profile. It also requires a BLA filing and ten consecutive trading days with a market capitalization of at least $1,500.0 million. Draws end at the earlier of 60 days after the milestone and December 15, 2026.
The fifth tranche of up to $100.0 million requires the HS milestone and FDA approval of the application. It can be drawn until the earlier of 60 days after approval and December 15, 2027. A sixth tranche of up to $200.0 million is at the lenders' discretion.
Covenant, prepayment and security
The conditional performance covenant applies only if the fifth tranche is drawn. From the quarter nine months after FDA approval, trailing six-month net product revenue must be at least 50% of the forecast the company delivers under the agreement. The covenant is not tested while the company has a market capitalization of $1,500.0 million and unrestricted cash of at least 50% of the loan, or unrestricted cash of at least 85% of the loan, or a market capitalization of at least $2,000.0 million.
There are no scheduled amortization payments. MoonLake may prepay in full at any time, with a prepayment charge of 2.0% to 0.0% and an end-of-term charge of 6.95% to 4.25%, depending on timing. The obligations are secured on a first-priority basis by substantially all assets, including intellectual property.
Board change
On February 18, 2026, director Simon Sturge notified the board that he would resign, effective February 28, 2026. The board shrinks from six directors to five. The 8-K says his decision was not the result of any dispute with the company. Dr. Jorge Santos da Silva became Interim Chair, and Spike Loy became Lead Independent Director.
Phase 2 results in axial spondyloarthritis
On February 22, 2026, the company announced topline results from the S-OLARIS Phase 2 trial of SLK in radiographic and non-radiographic axial spondyloarthritis (axSpA). The company says SLK showed "clinically meaningful and statistically significant benefit." The one figure the 8-K gives is that 81% of patients treated with SLK (n=26, mNRI) achieved an ASAS40 response at week 12. That figure rests on 26 patients, and the 8-K gives no comparison arm for it. The company adds that the safety profile was consistent with previous trials with no new safety signals detected.
The 8-K also reports that the company held cash, cash equivalents and short-term marketable debt securities of $394.0 million as of December 31, 2025. The $400.0 million of tranches still to come mostly depend on trial and FDA outcomes that have not happened. The company's 2024 annual report said it expected to submit a first Biologics License Application for SLK in 2026 and, subject to FDA approval, to launch in the U.S. in 2027.