Arcellx weakness on competitive worries ‘overdone,’ says Guggenheim

Guggenheim analyst Michael Schmidt notes Arcellx (ACLX) shares are under pressure this afternoon following disclosure of a late-breaking ASH abstract from a potential competitor, Kelonia Therapeutics, highlighting the first anecdotal Phase 1 clinical data on three relapsed or refractory multiple myeloma patients that received lentiviral in vivo CAR-T gene therapy KLN-1010. While the abstract highlights “promise and potential feasibility of this approach,” the stock reaction seems “overdone” given the early nature of the data with limited follow-up and the absence of long-term safety data, the analyst tells investors. Guggenheim maintains a Buy rating on Arcellx shares, which are down $12.41, or 14% to $77.78 in afternoon trading.