Newcomer Arcellx (ACLX) could rival Johnson & Johnson (JNJ) in multiple myeloma, an analyst said Monday as the biotech stock soared to a two-month high.
XArcellx tested tailor-made cancer drugs, known as CAR-T, in patients with advanced multiple myeloma. Every patient responded, and all signs of cancer disappeared in 71% of patients who could be evaluated.
"Pretty much any way you slice the updated data, (Arcellx's treatment's effectiveness) outcomes are in line with the class-leader, Carvykti," SVB Securities analyst Daina Graybosch said in a report.
On today's stock market, the biotech stock surged 20.6% to 15.79. J&J and Legend shares closed roughly flat at a respective 176.40 and 46.
Biotech Stock: Genetically Modified Cancer Fighters
CAR-T drugs use a patient's own immune cells, genetically modified to attack cancer. The leader in this space is Carvykti from Johnson & Johnson and Legend Biosciences (LEGN).
Arcellx evaluated 31 patients following at least one month of treatment with its drug. All patients had poor prognoses and were considered difficult to treat. Nearly all of the patients, 94%, had a "very good" partial response to the treatment.
Sixteen patients received treatment more than a year ago. Out of that group, 13 showed no detectable signs of cancer and nine are still responding at a median of 17.7 months.
Bullishly for biotech stock Arcellx, there have also been no serious cases of cytokine release syndrome, a common side effect of CAR-T treatment, which riles up the immune system. Physicians managed those episodes with standard treatment, Arcellx said in its news release.
Initial Public Offering In February
Arcellx launched its initial public offering in February and closed its first trading day at 16.80. Today, the biotech stock trades below that point.
But shares recently surged above their 50-day moving line, according to MarketSmith.com.
SVB Securities' Graybosch has an outperform rating on the biotech stock.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
YOU MAY ALSO LIKE:
Eli Lilly Flirts With Buy Point On A 'Flawless' Update For Its Diabetes-Turned-Obesity Drug
Novavax Crashes After FDA Suggests Its Covid Vaccine Causes Heart Inflammation
Get Timely Buy & Sell Alerts With IBD Leaderboard
Options Trading: How To Start Using Options, How To Manage Risk
