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.

Analyst Calendar