Tuesday, Stifel reiterated its Buy rating on shares of Arcellx Inc. (NASDAQ: ACLX) with a $122.00 price target.
The firm's analyst commented on the recent data presented at the American Society of Hematology 2024 (ASH24) meeting, highlighting the potential of Arcellx's candidate, anito-cel, in the Multiple Myeloma market.
"We™re reiterating our Buy rating following data at ASH24, which we think make a strong case for anito-cel as best-in-class, potentially positioning ACLX/GILD to own majority share in the incident Multiple Myeloma market," the firm said.
Despite a positive top-line release, the analyst observed that the stock's reaction was subdued, which could be attributed to concerns over the long-term emergence of Parkinsonism. However, the stock had previously seen a significant increase of approximately 27% since September 4, 2024, compared to the XBI index, which remained largely unchanged.
The analyst expressed optimism regarding the safety profile of anito-cel, citing that the dataset now includes over 150 patients and has not shown signs of Parkinsonism or cranial nerve palsies. This is considered a favorable comparison to cilta-cel's safety profile as observed in the CARTITUDE-1 study by the same point in time, which was ASH2020.
The firm believes that as more follow-up data becomes available, it will likely bolster confidence in anito-cel's differentiated safety thesis and, in turn, drive the stock's value higher.
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