Wall Street financial giant Wells Fargo has initiated coverage on emerging biotech player Arcellx (ACLX.US) with an "Overweight" rating, highlighting its experimental CAR-T therapy "anito-cel" as a "future pillar" in the management of multiple myeloma. The bank's bullish $100 price target suggests a potential 53% upside from Monday's closing price, offering a significant morale boost to the global innovative drug sector amid recent corrections.

Arcellx's stock has underperformed this year, dropping over 15% year-to-date, lagging behind the S&P 500. Wells Fargo senior analyst Yanan Zhu emphasized that anito-cel, with its superior efficacy and safety profile compared to peers, could capture a dominant share in the BCMA CAR-T market for relapsed/refractory multiple myeloma (4L+). He projects rapid adoption upon its anticipated 2026 launch and expects further expansion with potential approval in second-line (2L+) therapy by 2028.

Developed in collaboration with Kite Pharma (owned by Gilead Sciences, GILD.US), anito-cel targets BCMA using Arcellx’s proprietary D-Domain technology. Zhu forecasts peak sales of $1.6 billion in fourth-line treatment ($690 million for Arcellx) and $3.8 billion post-second-line approval ($1.5 billion for Arcellx). Despite strong Phase 3 data from Johnson & Johnson’s (JNJ.US) Tecvayli-Darzalex combo, Zhu notes 30% of second-line patients exhibit Darzalex resistance, creating an opening for anito-cel.

Arcellx, a clinical-stage biotech, focuses on cell therapies for cancer and autoimmune diseases. Its anito-cel (formerly CART-ddBCMA) modifies patient T-cells to target BCMA, leveraging a compact D-Domain design for enhanced CAR expression and reduced toxicity. Early data show low rates of severe immune reactions (e.g., CRS/ICANS). If approved, anito-cel could redefine the BCMA-targeted therapy landscape, positioning it as a cornerstone in myeloma treatment.