Lineage Cell Therapeutics (LCTX) Q3 2024 earnings summary

Executive summary

• Cash runway extended into Q1 2026 due to fiscal discipline, delayed spending, and strong cash reserves of $32.7 million as of September 30, 2024.

• OpRegen, partnered with Roche/Genentech, is in Phase IIa for dry AMD, received FDA RMAT designation in September 2024, and is supported by a new services agreement.

• OPC1 for spinal cord injury is advancing toward a new clinical study, with FDA review of the IND amendment expected in Q1 2025.

• Pipeline includes Resonance (ANP1) for hearing loss and other preclinical programs for vision loss and CNS diseases, all showing technical and regulatory progress.

• Operations and manufacturing are concentrated in Israel, with no material impact yet from the Israel-Hamas war, but risks remain.

Financial highlights

• Q3 2024 revenues were $3.8 million, up $2.5 million year-over-year, mainly from increased collaboration revenue with Roche.

• Operating expenses were $7.6 million, down $0.3 million year-over-year; R&D expenses decreased by $0.6 million, G&A increased by $0.4 million.

• Net loss for Q3 2024 was $3.0 million ($0.02/share), improved from $7.1 million ($0.04/share) in Q3 2023.

• Cash, cash equivalents, and marketable securities totaled $32.7 million as of September 30, 2024.

• Cash used in operations for the nine months ended September 30, 2024 was $16.7 million, down from $22.5 million in the prior year.

Outlook and guidance

• Cash runway now expected to last into Q1 2026, a quarter longer than previously guided.

• FDA review of OPC1 IND amendment anticipated in Q1 2025, with DOST study enrollment to follow.

• CIRM grant portal expected to reopen in spring, potentially providing 60% financial support for the DOST study.

• $39.97 million remains available under the at-the-market equity offering program.

• Additional capital will be needed for long-term operations and clinical development.