Arcellx: Differentiated D-Domain BCMA CAR-T Profile and Safety Advantages Underpin Buy Rating and 58% Upside Potential

Analyst Geoff Meacham from Citi maintained a Buy rating on Arcellx Inc and keeping the price target at $110.00.

Geoff Meacham has given his Buy rating due to a combination of factors tied to Arcellx’s differentiated clinical and mechanistic profile for anito-cel. He points to new TANDEM data showing that anito-cel’s D-Domain binder avoids the off-target interaction with Claudin-9 that has been implicated in higher rates of delayed neurotoxicity with a key competitor, supporting a cleaner and potentially safer safety profile. The absence of cross-reactivity and reduced risk of delayed neurologic events strengthens the argument that anito-cel can emerge as a best-in-class BCMA CAR-T therapy and capture meaningful market share.

Furthermore, Meacham highlights that anito-cel’s D-Domain construct does not demonstrate tonic signaling, in contrast to the constructs used in Carvykti and Abecma, which show significant antigen-independent activation. This lack of tonic signaling, supported by data showing minimal T-cell activation and no detectable cytokine release in the absence of antigen, suggests lower risk of T-cell exhaustion and off-target toxicity. He attributes these advantages to specific structural features of the D-Domain, such as its faster off-rate, smaller size, and reduced tendency to aggregate, all of which help prevent unintended CAR clustering. Combined with a projected upside in the stock of roughly 58% from current levels, these data-driven advantages underpin his Buy rating on Arcellx.

Meacham covers the Healthcare sector, focusing on stocks such as Eli Lilly & Co, Arcellx Inc, and Bristol-Myers Squibb. According to TipRanks, Meacham has an average return of 7.5% and a 57.77% success rate on recommended stocks.

In another report released today, Needham also maintained a Buy rating on the stock with a $105.00 price target.