Shares of biotechnology company Arcellx (NASDAQ:ACLX) are soaring higher today after it announced a global collaboration with Gilead Sciences’ (NASDAQ:GILD) Kite for the co-development and co-commercialization of ACLX’s lead candidate CART-ddBCMA for the treatment of relapsed or refractory multiple myeloma.
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The strategic collaboration will help Kite expand into a new area. The investigational cell therapy is currently in the Phase 2 stage and makes use of ACLX’s novel D-Domain binder. The two partners will jointly work on the advancement of CART-ddBCMA.
Further, under the deal, ACLX will receive $225 million in upfront cash payment alongside a $100 million equity investment. The two companies will jointly commercialize the therapy and share the profits 50/50. The deal is anticipated to close in Q1 2023.
Analysts currently have a Strong Buy consensus rating on the stock alongside an average price target of $33.40.
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