Piper Sandler maintains Overweight rating on Arcellx stock amid CAR-T safety study

Published 08/07/2025, 14:20
Piper Sandler maintains Overweight rating on Arcellx stock amid CAR-T safety study

Investing.com - Piper Sandler has reiterated its Overweight rating and $115.00 price target on Arcellx Inc. (NASDAQ:ACLX), maintaining its positive outlook on the clinical-stage cell therapy company. Currently trading at $65.55, the stock sits well below analysts’ consensus target range of $93-$134, according to InvestingPro data.

The reaffirmation comes as investors have been closely monitoring the competitive landscape between Arcellx’s anito-cel therapy and Johnson & Johnson’s Carvykti, with particular focus on their respective neurotoxicity profiles.

A recent study published in Nature Communications this month examined the safety profiles of Carvykti compared to Bristol Myers (NYSE:BMY) Squibb’s Abecma, providing insights into the cellular mechanisms potentially responsible for delayed neurotoxicity events associated with Carvykti.

The comparative analysis, though limited to 39 patients, revealed that Carvykti’s cell expansion demonstrates unique characteristics, with effector-memory being the dominant cell phenotype associated with the treatment and found in patients’ cerebrospinal fluid.

According to Piper Sandler, the study’s authors suggest these cellular characteristics may partially explain both the delayed neurotoxicities and infections reported with Carvykti administration, a finding potentially significant for Arcellx as it positions its competing therapy in the CAR-T market. With a market capitalization of $3.6 billion and strong momentum scores, detailed analysis of ACLX’s competitive position and 13 additional ProTips are available on InvestingPro.

In other recent news, Arcellx Inc. has been the focus of analyst attention due to its promising cell therapy, anito-cel. Citi initiated coverage of Arcellx with a buy rating and a price target of $110, highlighting anito-cel’s potential in the multiple myeloma market. The therapy’s efficacy is said to be comparable to leading CAR-T therapies, with a notably differentiated safety profile, potentially offering a safer option for patients. Citi emphasized the therapy’s lack of delayed neurotoxicities and its potential for outpatient administration as significant advantages.

Additionally, H.C. Wainwright maintained its buy rating and set a $115 price target on Arcellx, following the company’s presentation at the EHA 2025 conference. The focus was on the launch plans for anito-cel, with an ambitious strategy targeting over 160 Authorized Treatment Centers within the first year of its expected launch in the second half of 2026. Arcellx, in partnership with Kite, plans to achieve extensive coverage of the fourth-line-plus patient population by 2027, aiming for 90% commercial insurance coverage shortly after launch.

Kite’s existing infrastructure, which includes access to over 9,000 healthcare professionals and an established network of more than 550 ATCs globally, will be instrumental in the rollout of anito-cel. The therapy will also be integrated into Kite Konnect, enhancing patient access and support. These developments position Arcellx and its partner Kite to potentially capture a significant share of the multiple myeloma market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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