BofA Initiates Arcellx With Buy On Its Novel Therapy Approach

Arcellx ACLX is advancing  into pivotal testing (by year-end 2022) of its B-cell maturation antigen (BCMA) directed combination antiretroviral therapy (CART), known as ddBCMA, for relapsed refractory multiple myeloma, according to BofA Securities.

The Arcellx Analyst: Jason Gerberry initiated coverage of Arcellx with a Buy rating and a price target of $24.

The Arcellx Thesis: The company takes a compelling approach that involves engineering CARTs using a novel synthetic binding scaffold, Gerberry said in the initiation note.

“ACLX’ approach with its lead ddBCMA (in Ph1/2) has shown promise reducing toxicity without trading off efficacy vs. BCMA leaders,” he wrote.

“We look ahead to ASH ’22 as an important de-risking event that could position ddBCMA as an attractive late-mover in a large market,” the analyst added.

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"We are also excited about ACLX’ ability to leverage D-domain engineering through programs using its ARC-SparX technology, potentially expanding the frontier of CART to dosable and controllable CARTs designed to be activated only when combined with SparX proteins; ARC-SparX moves into the clinic in ’22 with potential to address indications where toxicity and/or antigen heterogeneity have limited CART development," Gerberry further mentioned.

ACLX Price Action: Shares of Arcellx had declined by 10.55% to $17.12 at the time of publication Tuesday.