On February 13, 2026, First Turn Management, LLC disclosed in an SEC filing that it sold out of Arcellx (NASDAQ:ACLX), selling all 313,733 shares in an estimated $25.76 million transaction. What happened According to a recent SEC filing dated February 13, 2026, First Turn Management reported selling its entire stake of 313,733 shares in Arcellx. The fund’s quarter-end position in Arcellx declined by $25.76 million, a change that reflects both the sale and movement in the underlying share price. What els ...

Arcellx Incorporated (NASDAQ:ACLX) is one of 17 biotechnology stocks with more than 50% upside. On February 12, Qize Ding from Rothschild & Co Redburn downgraded the rating on Arcellx Incorporated (NASDAQ:ACLX) from Buy to Neutral. In the process, he also reduced the price target from $113 to $82, which still yields a revised upside potential of almost 20%. Ding’s views are based on his conservative stance on the company’s CAR-T cell therapy class amid rising competition across larger markets in other mod ...

Industry Overview - The biotechnology sector in 2025 faced both challenges and opportunities, remaining on a high-growth trajectory due to clinical and operational breakthroughs, but is expected to encounter significant regulatory, political, and financial uncertainties going forward [1] - A report by Boston Consulting Group titled "Biopharma Trends 2026" indicates a shift in R&D spending towards large populations and real-world applicability, alongside an increase in M&A activity as companies pursue inorganic growth strategies [2] - Cost-optimization measures will be a priority for biopharma companies to achieve target margins, necessitating a rethink of business models and the incorporation of AI in operations to sustain themselves [2] Market Dynamics - Biotechnology stocks exhibit high volatility, presenting both risks and attractive opportunities for investors, with careful selection potentially leading to significant portfolio outperformance [3] - The article explores 17 biotechnology stocks identified as having more than 50% upside potential, emphasizing the need for careful navigation in this competitive and rapidly evolving segment [3] Stock Selection Methodology - The selection process for relevant stocks involved screening U.S.-listed biotechnology companies with market capitalizations above $2 billion and share prices above $5, identifying those with at least 50% upside potential based on TipRanks consensus [5] Company Highlights - **BioMarin Pharmaceutical (NASDAQ:BMRN)**: - Holds a moderately bullish analyst sentiment with a projected median 1-year price target of $88.29, implying over 47% upside potential [8] - The company develops targeted therapies for life-threatening medical conditions and rare genetic diseases, with several drugs in the development stage [10] - **Apogee Therapeutics (NASDAQ:APGE)**: - Analysts maintain a Buy rating with a price target of $95, indicating potential upside of over 37% despite recent selloff viewed as an overreaction [11][12] - The company is developing novel biologics for inflammatory and immune diseases, with a pipeline that includes multiple candidates in various clinical trial stages [15] - **Arcellx Incorporated (NASDAQ:ACLX)**: - Analysts have mixed ratings, with one maintaining a Buy rating and a price target of $127, suggesting an upside potential of 85% [18] - The company focuses on advanced immunotherapies for cancer patients, leveraging proprietary technology to develop effective treatments targeting various malignancies [20]

Core Insights - Baron Health Care Fund reported a 13.10% gain in Q4, outperforming the Russell 3000 Health Care Index's 11.92% and the Russell 3000 Index's 2.40% [1] - For the full year, the Fund returned 10.28%, while the benchmarks gained 14.56% and 17.15% respectively [1] - Strong stock selection in biotechnology was a key contributor to the Fund's relative performance in the quarter [1] - The Fund focuses on businesses with secular growth opportunities, sustainable competitive advantages, and strong management [1] - The healthcare sector is viewed as a strong investment opportunity in the U.S. economy, with positive momentum expected through 2026 [1] Company-Specific Insights - Arcellx, Inc. (NASDAQ:ACLX) was identified as a performance detractor in the Fund's Q4 2025 letter [2] - Arcellx develops immunotherapies for cancer and other incurable diseases, with a market capitalization of $3.87 billion as of February 5, 2026 [2] - The stock had a one-month return of 1.01% and a 52-week gain of 0.04% [2] - Arcellx is developing cell therapies for multiple myeloma, including the lead candidate anito-cel in partnership with Gilead [3] - Anito-cel is a BCMA-targeted CAR-T therapy, showing comparable efficacy to competitors but with a more favorable side-effect profile [3] - Despite positive clinical results, Arcellx's performance was impacted by competition from Johnson & Johnson's Tecvayli plus Darzalex combination [3] - Industry experts believe BCMA CAR-T will remain the preferred treatment for many patients in the second-line setting [3] - The company expects Arcellx's drug to be meaningfully differentiated on safety and anticipates share appreciation ahead of a potential 2026 launch [3]

Company Overview - Arcellx, Inc. is a clinical-stage biotechnology company focused on innovative immunotherapies for cancer and other incurable diseases, primarily collaborating with oncology healthcare providers and patients in the U.S. and select global markets [5] - As of January 20, 2026, the company's stock price was $68.31, with a market capitalization of $3.95 billion and a revenue of $35.90 million for the trailing twelve months [4] Transaction Summary - Director David Charles Lubner sold 6,000 shares of Arcellx common stock for approximately $450,000 on January 20, 2026, reducing his direct holdings by 21.69% [1][2][8] - Post-transaction, Lubner holds 21,659 shares valued at approximately $1.56 million based on the closing price of $72.17 on the same date [2] Financial Performance - The company's stock fell approximately 15% in 2025, indicating struggles in its market performance [9] - Despite negative operating income, Arcellx has sufficient funding to operate through 2028, reflecting strong investor support [6] Development Milestones - Arcellx recently advanced its multiple myeloma treatment to the second phase of development, which could become a significant revenue generator if successful [7] Ownership and Transaction Implications - The transaction was executed under a Rule 10b5-1 prearranged plan, suggesting that the timing and scale of the sale were predetermined [8]

Group 1 - Arcellx Inc. (NASDAQ:ACLX) is recognized as a high short interest stock with significant upside potential, with UBS initiating coverage with a Buy rating and a $100 price target [1] - Wells Fargo also initiated coverage of Arcellx with an Overweight rating and a $100 price target, highlighting the company's anito-cel as a key treatment for multiple myeloma [2] - UBS expects a recovery in investor confidence in the biotech sector, predicting strong performance in 2026 due to improving fundamentals [1][3] Group 2 - Wells Fargo believes that anito-cel is well-positioned to dominate the BCMA CAR-T market for fourth-line multiple myeloma, citing its efficacy and safety profile [3] - The anticipated launch of anito-cel in 2026 is expected to lead to rapid market uptake [3] - Arcellx is involved in developing various immunotherapies for cancer and other incurable diseases in the US [4]

Company Overview - Arcellx, Inc. (ACLX) is part of the Medical group, which consists of 932 companies and currently ranks 8 within the Zacks Sector Rank [2] - The company belongs to the Medical - Biomedical and Genetics industry, which includes 453 companies and is ranked 93 in the Zacks Industry Rank [6] Performance Metrics - Year-to-date, Arcellx, Inc. has returned approximately 10.7%, outperforming the average gain of 6% for Medical stocks [4] - The Zacks Consensus Estimate for ACLX's full-year earnings has increased by 1.2% over the past quarter, indicating improved analyst sentiment [4] Comparison with Peers - Bayer Aktiengesellschaft (BAYRY), another Medical stock, has outperformed the sector with a year-to-date return of 15.6% and a Zacks Rank of 1 (Strong Buy) [5] - The Large Cap Pharmaceuticals industry, which includes Bayer, has gained 19.8% since the beginning of the year, while Arcellx, Inc. is slightly underperforming its industry group [6][7]

Core Viewpoint - Wells Fargo has initiated coverage and assigned an "overweight" rating to Arcellx (ACLX.US), predicting that its experimental CAR-T therapy "anito-cel" will significantly reshape the treatment landscape for multiple myeloma, with a target price of $100, indicating a potential upside of 53% from the current price [1] Group 1: Company Overview - Arcellx is a clinical-stage biotechnology company focused on developing cell therapy products for cancer and certain autoimmune conditions using its proprietary D-Domain technology platform [4] - The company is a key player in the cell therapy space, but its commercial expansion heavily relies on the potential approval and market launch of its innovative drug pipeline, particularly the core product anito-cel [4] Group 2: Product Insights - Anito-cel is an autologous CAR-T cell therapy targeting BCMA for relapsed/refractory multiple myeloma, developed in collaboration with Kite Pharma, a subsidiary of Gilead Sciences [4][5] - The therapy is expected to gain significant market share in the 4L+ BCMA CAR-T market due to its attractive efficacy and safety profile compared to currently approved competitors [2] - Analysts predict peak sales for anito-cel could reach $1.6 billion in the fourth-line setting, with approximately $690 million attributed to Arcellx, and potentially $3.8 billion after gaining second-line approval, with around $1.5 billion for Arcellx [2] Group 3: Market Dynamics - Despite strong recent clinical trial data from Johnson & Johnson's Tecvayli and Darzalex for multiple myeloma, approximately 30% of patients show extreme resistance to Darzalex, making them ineligible for the Tec-Dara combination therapy [3] - If anito-cel is approved as anticipated in 2026 and leverages its efficacy and safety advantages, it could alter the ranking and market share distribution of BCMA-targeted therapies in the later treatment lines [6]

Core Viewpoint - Wells Fargo initiates coverage and assigns an "overweight" rating to Arcellx (ACLX.US), highlighting its experimental CAR-T therapy "anito-cel" as a potential cornerstone in the management of multiple myeloma, which could significantly reshape treatment paradigms [1][4] Group 1: Company Overview - Arcellx is a clinical-stage biotechnology company focused on developing cell therapy products for cancer and certain autoimmune conditions using its proprietary D-Domain technology platform [3] - The company is collaborating with Kite Pharma, a subsidiary of Gilead Sciences (GILD.US), for the development and commercialization of anito-cel [2][3] Group 2: Product Potential - Anito-cel is a BCMA-targeted autologous CAR-T cell therapy designed for relapsed/refractory multiple myeloma, with expectations for significant market share in the 4L+ BCMA CAR-T market due to its attractive efficacy and safety profile compared to existing approved products [1][2][4] - Analysts project peak sales for anito-cel in the fourth-line setting could reach $1.6 billion, with approximately $690 million attributed to Arcellx, and potentially $3.8 billion after gaining second-line approval, with around $1.5 billion for Arcellx [2] Group 3: Market Impact - The anticipated approval of anito-cel in 2026 could lead to rapid market penetration, fundamentally altering the competitive landscape for BCMA-targeted therapies in multiple myeloma [5] - Despite strong recent clinical trial data from Johnson & Johnson's (JNJ.US) Tecvayli and Darzalex, approximately 30% of patients show extreme resistance to Darzalex, which may limit its effectiveness in certain treatment scenarios [2]

Core Viewpoint - Wells Fargo initiates coverage on Arcellx (ACLX.US) with an "overweight" rating, highlighting its experimental CAR-T therapy "anito-cel" as a potential future pillar in the management of multiple myeloma, which could significantly reshape treatment paradigms [1][4] Group 1: Investment Potential - Wells Fargo sets a target price of $100 for Arcellx, indicating a potential upside of 53% from the recent closing price, providing a strong boost to the currently retracing global innovative drug sector [1] - Despite a year-to-date decline of over 15% in Arcellx's stock price, which has underperformed the S&P 500 index, the bullish outlook from Wells Fargo is seen as a critical support for the stock [1] Group 2: Product Development and Market Position - Anito-cel is expected to receive formal approval in the second-line treatment category by 2028, potentially earlier, which would significantly enhance sales growth trajectories [2] - The peak sales for anito-cel in the fourth-line (4L) market is projected to be $1.6 billion, with approximately $690 million attributed to Arcellx, and could reach around $3.8 billion after gaining second-line and above approvals, with about $1.5 billion for Arcellx [2] Group 3: Competitive Landscape - Despite strong recent clinical trial data for Johnson & Johnson's Tecvayli and Darzalex in multiple myeloma, approximately 30% of patients show extreme resistance to Darzalex, making them ineligible for the Tec-Dara combination therapy [2] - Anito-cel's differentiated design, utilizing Arcellx's D-Domain technology, aims to achieve higher CAR expression and reduce severe immune toxicity, positioning it favorably against existing therapies [4][5] Group 4: Mechanism and Innovation - Anito-cel is a targeted autologous CAR-T cell therapy aimed at relapsed/refractory multiple myeloma, developed in collaboration with Kite Pharma, a subsidiary of Gilead Sciences [3] - The innovative mechanism of anito-cel involves modifying patient T cells to express a chimeric antigen receptor that recognizes BCMA, with a focus on maintaining efficacy while minimizing severe immune-related side effects [4]