Needham Sees Market Potential For Arcellx Multiple Myeloma Candidate, Sees 50% Upside In Stock
- Needham initiated coverage on Arcellx Inc 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 Abecma and Johnson & Johnson's 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.
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