Gracell initiated with an Outperform at Evercore ISI

Evercore ISI initiated coverage of Gracell (GRCL) with an Outperform rating and no price target. Johnson & Johnson (JNJ) “took a leap into cell therapy” with Chinese company Legend Biotech (LEGN) to commercialize their BCMA CAR-T in multiple myeloma, or MM, and now Carvykti is one of J&J’s key products, notes the analyst, who identifies Gracell as “another Chinese company with a unique CAR-T construct for MM” that “grabbed people’s attention at ASCO this year.” While noting that Gracell is late to market with a potential launch in 2027 and no established pharma partner yet, even modeling “only an extremely conservative share in MM” leaves significant upside to the stock, the analyst tells investors.