Lineage Cell Therapeutics (LCTX) Q2 2024 earnings summary

Executive summary

• The company is a clinical-stage biotech focused on allogeneic cell therapies, with a proprietary platform and strategic collaborations, notably with Roche/Genentech for OpRegen in ocular disorders.

• OpRegen, the lead partnered program, is in Phase II for geographic atrophy secondary to AMD, with new ex-U.S. clinical sites and positive 24-month visual acuity data; the Roche agreement includes up to $620 million in milestones and double-digit royalties.

• Expanded partnership with Roche/Genentech includes a new service agreement, extended patient follow-up, and manufacturing support, fully funded by Genentech.

• Pipeline includes OPC1 for spinal cord injury (preparing for a new clinical study pending FDA feedback) and ANP1 for hearing loss, plus a gene editing collaboration with Eterna.

• Operations and manufacturing are concentrated in Israel, with business continuity plans in place due to risks from the Israel-Hamas war.

Financial highlights

• Cash, cash equivalents, and marketable securities totaled $38.5 million as of June 30, 2024, supporting operations into Q4 2025.

• Q2 2024 revenues were $1.4 million, down 56% year-over-year, mainly due to lower collaboration/licensing revenue.

• Operating expenses for Q2 2024 were $7.3 million, down 12% year-over-year, with R&D expenses at $2.9 million and G&A at $4.3–4.4 million.

• Net loss for Q2 2024 was $5.8 million ($0.03/share), compared to $5.2 million ($0.03/share) in Q2 2023.

• Cash used in operating activities for H1 2024 was $11.0 million, improved from $17.5 million in the prior year; net cash from financing was $14.1 million.

Outlook and guidance

• Cash runway extends into Q4 2025, not including potential milestone payments from Roche.

• Management expects current resources to fund operations for at least twelve months from the financial statement date.

• Awaiting FDA clearance to initiate OPC1 dose study and apply for a CIRM grant, which could offset up to half of trial costs.

• Updates expected soon on OpRegen data, OPC1 clinical progress, and ANP1 preclinical results.

• The company anticipates continued operating losses and will require significant additional capital for future development and regulatory activities.