Arcellx initiated with a Buy at Citi

Citi initiated coverage of Arcellx (ACLX) with a Buy rating and $110 price target The firm sees “significant potential” of the company’s “differentiated” cell therapy, anito-cel. The 20% pullback in the stock over the past six months provides an attractive risk/reward as anito-cel continues to demonstrate efficacy comparable to leading CAR-T therapies with a “significantly differentiated safety profile,” the analyst tells investors in a research note. Citi says that most importantly, anito-cel has shown no signs of the delayed neurotoxicities, such as parkinsonism and Guillain-Barr syndrome, that have been observed with Carvykti, suggesting a superior safety advantage that could enable anito-cel to capture a portion of the multi-billion multiple myeloma market.