Arcellx Inc (ACLX) AI Stock Analysis

• Market Cap: $3.41B
• Dividend Yield: N/A
• Average Volume (3M): 734.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.66
• Revenue Growth: -2.16%
• EPS Growth: -31.69%
• Country: US
• Employees: 163
• Sector: Healthcare
• Sector Strength: 66
• Industry: Biotechnology
• EPS (TTM): -1.99
• Shares Outstanding: 54,944,010
• 10 Day Avg. Volume: 891,835
• 30 Day Avg. Volume: 734,249
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 35.30
• Price to Cash Flow (P/CF): -20.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $117.15
• Price Target Upside: 88.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

Arcellx Inc's overall stock score reflects significant financial challenges due to lack of profitability and revenue, impacting its financial performance score. Technical indicators suggest a neutral to bearish outlook. Despite these challenges, the company's strategic board changes for future growth provide a positive counterbalance, slightly improving the overall outlook.

Positive Factors

Clinical Data

The Phase 2 data for anito-cel presents a compelling clinical profile, with a 97% overall response rate, coupled with a 62% stringent complete response/complete response rate.

Financial Health

Ending 2024 with $626M in cash, equivalents, and marketable securities, the company reiterated a financial runway into 2027, indicating strong financial health.

Product Innovation

Arcellx announced the addition of a second tumor antigen target to their universal CAR-T platform in acute myeloid leukemia, indicating continued innovation and expansion of their product pipeline.

Negative Factors

Cost Management

At low production scale, autologous CAR-T costs-of-goods-sold (COGS) continue to be highly volatile, highlighting the non-linear relationship between sales and profitability for CAR-T products.

Financial Performance

2seventy bio released their annual report where they disclosed that their 4Q24 gross profit / loss split with BMY on US Abecma sales was a $4.49M loss on $59M sales.

Production Challenges

When auto CAR-T products operate at low production scale, the manufacturer is exposed to outsized impacts on their bottom line from fixed-cost events such as batch write-offs or overhead allocation from low manufacturing suite utilization.

Arcellx Inc Business Overview & Revenue Model

Company Description

Arcellx, Inc., a clinical-stage biotechnology company, engages in the development of various immunotherapies for patients with cancer and other incurable diseases. The company's lead ddCAR product candidate is CART-ddBCMA, which is in phase 1 clinical trial for the treatment of patients with relapsed or refractory (r/r) multiple myeloma (MM). It is also developing ACLX-001, an immunotherapeutic combination composed of ARC-T cells and bi-valent SparX proteins targeting BCMA to treat r/r MM; ACLX-002 and ACLX-003 for treating r/r acute myeloid leukemia (AML) and myelodysplastic syndrome (MDS); and other AML/MDS product candidates, as well as solid tumor programs. The company was formerly known as Encarta Therapeutics, Inc. and changed its name to Arcellx, Inc. in January 2016. Arcellx, Inc. was incorporated in 2014 and is headquartered in Gaithersburg, Maryland.

How the Company Makes Money

Arcellx Inc makes money primarily through the development and commercialization of its cell therapy products. The company's revenue model is centered around advancing its proprietary ARC-SparX platform through clinical trials, gaining regulatory approvals, and eventually bringing these therapies to market. Key revenue streams include potential milestone payments and royalties from partnerships with other biotechnology and pharmaceutical companies. Additionally, Arcellx may engage in strategic collaborations or licensing agreements, which can provide upfront payments and ongoing financial support as the therapies progress through various stages of development.

Arcellx Inc Financial Statement Overview

Summary

Arcellx Inc faces significant challenges in achieving profitability and maintaining financial health. The company has no revenue in 2024, zero stockholders' equity, and negative cash flow, despite efforts to reduce liabilities. These factors raise concerns about the company's financial stability.

Income Statement

Arcellx Inc has struggled with profitability, as evidenced by consistent net losses over the years. The absence of revenue in 2024 highlights a concerning trend in revenue generation. The company managed to achieve revenue in 2023, which was a bright spot, but it is not sustained in 2024. Gross profit margins and other profitability metrics are negative due to the lack of revenue and high operating costs, indicating persistent challenges in achieving financial stability.

Balance Sheet

The balance sheet shows a concerning trend with zero stockholders' equity in 2024, indicating potential financial distress. The total assets have sharply declined, and the company now has no debt, which is a positive aspect. However, the lack of equity presents a significant risk. In previous years, the company had significant liabilities, which have now been reduced to zero, suggesting an effort to deleverage.

Cash Flow

The company's cash flow situation is mixed. Operating cash flow has turned negative in 2024 after a positive year in 2023. There is a significant decline in free cash flow, reflecting challenges in generating cash from operations. The reduction in capital expenditures is a positive sign, indicating a more cautious approach to spending, but the overall negative cash flow trend could be concerning if it continues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
107.94M	110.32M	0.00	0.00	0.00
	Gross Profit
107.94M	110.32M	-2.22M	-1.04M	-629.00K
	EBIT
-137.57M	-89.88M	-191.26M	-65.02M	-32.10M
	EBITDA
-99.06M	-64.14M	-184.74M	-63.93M	-31.47M
	Net Income Common Stockholders
-107.35M	-70.69M	-186.10M	-63.93M	-32.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
587.38M	702.02M	254.84M	104.62M	46.60M
	Total Assets
711.33M	825.13M	313.82M	128.78M	57.69M
	Total Debt
54.08M	97.63M	88.13M	100.00K	0.00
	Net Debt
-51.60M	-296.96M	23.95M	-104.52M	-46.60M
	Total Liabilities
256.54M	339.75M	108.86M	250.30M	121.41M
	Stockholders Equity
454.79M	485.38M	204.95M	-121.52M	-63.72M
Cash Flow		Free Cash Flow
-96.90M	186.15M	-101.58M	-60.02M	-29.55M
	Operating Cash Flow
-83.47M	207.57M	-99.30M	-54.24M	-28.66M
	Investing Cash Flow
-183.04M	-154.51M	-117.67M	-79.98M	-888.00K
	Financing Cash Flow
-24.09M	279.16M	252.63M	118.45M	41.66M

Arcellx Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACLX, the sentiment is Negative. The current price of 62.02 is below the 20-day moving average (MA) of 62.82, below the 50-day MA of 65.25, and below the 200-day MA of 72.94, indicating a bearish trend. The MACD of -1.98 indicates Negative momentum. The RSI at 46.14 is Neutral, neither overbought nor oversold. The STOCH value of 85.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACLX.

Arcellx Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTGX	61 Neutral	$2.84B	11.00	54.39%	―	624.05%	―
RYTM	54 Neutral	$3.76B	―	-272.15%	―	68.06%	-35.93%
Sector *	51 Neutral	$5.19B	3.13	-40.94%	2.95%	17.94%	2.00%
ACLX	48 Neutral	$3.41B	―	-22.84%	―	-2.16%	-31.69%
RARE	46 Neutral	$3.35B	―	-214.50%	―	29.01%	23.93%
SWTX	46 Neutral	$2.84B	―	-46.62%	―	3417.33%	30.06%
PTCT	42 Neutral	$3.74B	―	33.08%	―	-13.97%	43.51%

Arcellx Inc Corporate Events

Arcellx Inc Announces Board Changes for Strategic Growth

On March 18, 2025, Arcellx, Inc. announced changes to its Board of Directors, with Derek Yoon resigning and Andrew Galligan and Kristin Myers being appointed to fill vacancies. These appointments bring significant experience to the company, with Galligan’s financial leadership and Myers’ healthcare expertise expected to support Arcellx’s strategic growth and anticipated commercial launch of its lead product candidate, anito-cel, in 2026.