Lineage Cell Therapeutics Q2 2024 Financial Results and Business Update

Lineage Cell Therapeutics, Inc., a clinical-stage biotech firm focused on developing allogeneic cell therapies, announced its financial and operational results for the second quarter of 2024. The company will discuss these outcomes and provide a business update in a conference call scheduled for today at 4:30 p.m. Eastern Time.

CEO Brian M. Culley highlighted significant clinical and preclinical achievements during the quarter, emphasizing data updates and heightened awareness of their leading program. Culley expressed optimism about the partnership with Roche and Genentech for the OpRegen program, which has garnered attention through various scientific presentations and internal events. The collaboration aims to advance the Phase 2a clinical study for treating geographic atrophy (GA) secondary to age-related macular degeneration (AMD). Additionally, the company has begun activities under a new services agreement with Genentech to further explore the potential of OpRegen, leveraging Lineage's cell transplant expertise.

In parallel, Lineage is preparing to reintroduce its second cell transplant program, OPC1, for treating spinal cord injuries later this year. The program addresses a condition with significant unmet needs and commercial potential. The company believes its inclusion in the Russell 3000 Index will help expand investor awareness and support for its unique position in the cell transplant field.

Recent operational highlights include continued collaboration with Roche and Genentech, supporting the ongoing Phase 2a clinical study of OpRegen. Lineage has also initiated activities under a new services agreement with Genentech, providing clinical, technical, training, and manufacturing services funded by Genentech to optimize the OpRegen program. Positive clinical data from a long-term follow-up of patients in the Phase 1/2a study of OpRegen were presented, showing promising improvements in visual acuity and retinal structure.

For the OPC1 program, Lineage continues start-up activities for the DOSED clinical study, which aims to evaluate a novel device for delivering oligodendrocyte progenitor cells for treating spinal cord injuries. The company also held the second annual Spinal Cord Injury Investor Symposium in partnership with the Christopher & Dana Reeve Foundation.

Financially, Lineage reported cash, cash equivalents, and marketable securities totaling $38.5 million as of June 30, 2024, expected to support operations into the fourth quarter of 2025. Revenue for the second quarter was $1.4 million, a decrease compared to the same period in 2023 due to reduced collaboration and licensing revenue from the Roche agreement. Operating expenses, including research and development (R&D) and general and administrative (G&A) expenses, were $7.3 million, a slight decrease from the prior year. R&D expenses specifically decreased to $2.9 million, while G&A expenses saw a marginal increase to $4.3 million, primarily due to stock-based compensation and personnel costs.

Lineage reported a loss from operations of $5.9 million for the quarter, an increase compared to the same period in 2023. Other income for the quarter was $0.1 million, driven by exchange rate fluctuations and interest income. The net loss attributable to Lineage was $5.8 million, or $0.03 per share.

Lineage Cell Therapeutics continues to advance its pipeline of cell-based therapies aimed at addressing unmet medical needs. The company's ongoing collaborations and new service agreements are pivotal in progressing their clinical programs and exploring new therapeutic potentials. With sufficient financial resources projected to support their operations into late 2025, Lineage remains committed to its mission of developing innovative treatments for debilitating conditions.