ACLX - Wainwright initiates Arcellx with a buy on CAR-T pipeline partnership with Gilead's Kite

H.C. Wainwright has initiated Arcellx ( NASDAQ: ACLX ) with a buy saying that the company's CAR-T therapies in development have advantages over marketed ones and its partnership with Gilead Sciences' ( GILD ) Kite Therapeutics will reap benefits.

The firm has a $42 price target (~38% upside based on Monday's close).

Analyst Emily Bodnar said that the biotech's novel CAR binding domain, D-Domain, "is smaller and highly stable compared to traditional binding domains."

Some of the benefits of D-Domain, according to Bodnar, include a high transduction efficiency for lead candidate CART-ddBCMA of ~60%-85% compared to Bristol-Myers Squibb's ( BMY )/2seventybio's ( TSVT ) Abecma (idecabtagene vicleucel) of ~50% and Johnson & Johnson's ( JNJ )  (Carvykti) (ciltacabtagene autoleucel) of ~15%. The candidate is in phase 2 for multiple myeloma.

She added that phase 1 data for CART-ddBCMA show it "to be potentially best-in-class" with similar efficacy and better safety compared to the CARTITUDE-1 pivotal study of Carvykti, even though Arcellx ( ACLX ) enrolled significantly more high-risk patients.

Bodnar noted that Arcellx's ( ACLX ) partnership with Gilead's ( GILD ) Kite on CART-ddBCMA "will bring significant clinical and potentially commercial advantages to Arcellx ( ACLX )."

Read why Seeking Alpha contributor Avisol Capital Partners says that Arcellx's ( ACLX ) relationship with Kite confirm s the former's technology .

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