William Blair initiated research coverage of Arcellx, Inc. (ACLX $16.97), a clinical-stage company focused on the development and commercialization of first-in-class adaptive immune cell therapies that can be readily activated and reprogrammed.
Analysts Raju Prasad and Sami Corwin believe the company’s lead candidate, CART-ddBCMA, if successful in treating highly refractory multiple myeloma (MM), could reach peak revenue of $2 billion. Arcellx plans to initiate a pivotal trial of CART-ddBCMA by the end of 2022, setting it up for potential commercial approval in 2025.
“Arcellx’s next-generation cell therapy platform is founded on the company’s proprietary d-domain technology,” Dr. Prasad said, “which we believe has significant advantages over traditional scFv-based CARs. In addition, Arcellx’s modular ARC-SparX platform could enable controllable and adaptable CAR-T therapies that are able to overcome some of the challenges for existing CAR-T therapies, such as CAR-induced toxicities and tumor heterogeneity. To date, CART-ddBCMA has demonstrated a 100% overall response rate, including a 68% complete response rate, in highly refractory MM patients, which we view as comparable to the leading BCMA CAR-Ts in MM.”
Dr. Corwin said, “Arcellx is using its ARC-SparX platform to develop therapies for cancer patients based on their specific molecular profile. The company is building a library of SparX proteins designed to target different antigens often found in AML and solid tumors and will begin evaluating the ARC-SparX platform in the clinic in multiple indications in 2022. In addition, Arcellx plans to leverage AI to inform the discovery and optimization of SparX proteins for novel antigen targets, which could expand the application of the platform outside oncology.”
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