Analyst Sees Market Potential For Arcellx Multiple Myeloma Candidate, Sees 50% Upside In Stock

  • Needham initiated coverage on Arcellx Inc ACLX with a Buy rating and a price target of $31.
  • Arcellx's lead program and main value driver is CART-ddBCMA, an autologous CAR-T therapy for relapsed or refractory (r/r) multiple myeloma (MM). 
  • With two CAR-Ts already on the market - Bristol Myers Squibb Co's BMY Abecma and Johnson & Johnson's JNJ Carvykti, Arcellx is a fast follower. 
  • The analyst says that early data for CART-ddBCMA supports an efficacy profile in line with the market leader (Carvykti).
  • While the MM market is crowded, Needham analyst believes CAR-Ts have demonstrated the best activity and that the incumbents are insufficient, given market needs. 
  • A physician survey identified access as a key issue, finding that only 35% of CAR-T-eligible patients receive treatment. 
  • Assuming 20% market penetration, CART-ddBCMA sales are estimated to reach $3 billion in 2033. 
  • Broader platform play (ARC-SparX) could also add a potential upside. A clinical update is expected in 4Q:22, with a pivotal study in 2023.
  • Price Action: ACLX shares are up 1.70% at $20.62 on the last check Thursday.
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