Needham Raises Arcellx Stock Target to $81 and Maintains Buy Rating By Investing.com

© Reuters.

Needham on Monday raised his price target on Arcellx Inc. (NASDAQ: ACLX ) stock to $81 from $72 previously, while maintaining a Buy rating on the stock. This adjustment follows a recent favorable vote regarding the use of CAR-T therapy in the initial line of treatment for multiple myeloma (MM). The company’s candidate, anito-cel, is expected to benefit from this development due to its similarities to Carvykti, which received unanimous support in a recent vote.

The FDA panel’s unanimous support for Carvykti (11-0) and majority support for Abecma (8-3) on Friday highlighted the potential expansion of the use of CAR-T therapies in the early stages of MM treatment. These changes could pave the way for similar treatments, including Arcellx’s anito-cel. The panel’s discussion highlighted that the one-time treatment aspect of CAR-T therapy is an important quality of life differentiator. However, they also noted that access to these treatments remains a significant barrier.

Discussions at Friday’s meeting also revealed issues with suboptimal connectivity associated with premature death when using Carvykti and Abecma. This discovery is expected to influence Arcellx’s strategy as it designs studies of its early-line treatments. The panel’s positive stance on CAR-T therapies is considered a de-risking factor for Arcellx. This is because it suggests a regulatory environment in which these treatments could be considered in the initial treatment setting.

Needham analysts believe the results of Friday’s meeting indicate regulatory openness to the use of CAR-T therapies in early lines of MM, which is a positive sign for Arcellx’s anito-cel.

This article was sponsored by AI and reviewed by an editor. Please see our T&Cs for more details.