Arcellx Inc (ACLX) AI Stock Analysis

• Market Cap: $3.61B
• Dividend Yield: N/A
• Average Volume (3M): 652.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: -2.16%
• EPS Growth: -31.69%
• Country: US
• Employees: 163
• Sector: Healthcare
• Sector Strength: 57
• Industry: Biotechnology
• EPS (TTM): -1.99
• Shares Outstanding: 55,072,693
• 10 Day Avg. Volume: 381,015
• 30 Day Avg. Volume: 652,072
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 33.63
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $117.15
• Price Target Upside: 78.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

Arcellx Inc's concerning financial performance, particularly the lack of revenue and equity, severely impacts its stock score. While technical analysis provides a glimmer of hope with slight upward momentum, the valuation remains weak with a negative P/E ratio. Investors should remain cautious, focusing on potential strategic shifts and the company's ability to generate revenue.

Positive Factors

Clinical Data

Initial results from the pivotal iMMagine-1 study in r/r MM presented at ASH suggest efficacy for anito-cel is at least on par with market leader Carvykti.

Financial Health

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

Regulatory Approval

The amendment of the iMMagine-3 trial to include MRD status as a co-primary endpoint could lead to earlier approval of anito-cel.

Negative Factors

Manufacturing Challenges

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.

Profitability Concerns

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.

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: Positive
• Last Price: 65.55
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACLX, the sentiment is Positive. The current price of 65.55 is above the 20-day moving average (MA) of 61.45, above the 50-day MA of 65.19, and below the 200-day MA of 73.19, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 54.77 is Neutral, neither overbought nor oversold. The STOCH value of 73.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACLX.

Arcellx Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTGX	56 Neutral	$2.79B	10.82	54.39%	―	624.05%	―
RYTM	54 Neutral	$3.76B	―	-272.15%	―	68.06%	-35.93%
SWTX	54 Neutral	$3.47B	―	-46.62%	―	3417.33%	30.06%
Sector *	52 Neutral	$5.35B	3.96	-42.60%	2.86%	17.58%	1.27%
RARE	49 Neutral	$3.69B	―	-214.50%	―	29.01%	23.93%
ACLX	44 Neutral	$3.61B	―	-22.84%	―	-2.16%	-31.69%
PTCT	42 Neutral	$3.94B	―	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.