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Lineage Cell Therapeutics, Inc. (LCTX)
:LCTX
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Lineage Therap
(NYSE MKT:LCTX)
45Neutral
Positive Factors
Clinical Trials
Positive results from Roche's upcoming Phase 2a data could further validate Lineage's approach and strengthen its positioning within the AMD therapy space.
Financial Stability
The company has strengthened its balance sheet with substantial financing, providing a runway into 2027 with the potential for further extension.
Strategic Partnerships
Roche's continued investment in the OpRegen program is seen as a positive early indicator replicating strong early results.
Negative Factors
Competition
Lineage remains well ahead in its clinical progress compared to Eyestem and continues to lead and build momentum in the space.
Stock Dilution
The company's 12-month price target has been lowered due to dilution from recent financing activities.
Lineage Therap (LCTX) vs. S&P 500 (SPY)
Market Cap
$93.63M
Dividend YieldN/A
Average Volume (3M)1.64M
Price to Earnings (P/E)―
Beta (1Y)0.94
Revenue Growth6.19%
EPS Growth22.05%
CountryUS
Employees70
SectorHealthcare
Sector Strength66
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.10
Shares Outstanding228,356,300
10 Day Avg. Volume1,217,523
30 Day Avg. Volume1,643,424
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)12.18
Price to Cash Flow (P/CF)-4.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.13Price Target Upside907.32% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Lineage Therap Business Overview & Revenue Model
Company DescriptionLineage Cell Therapeutics, Inc., a clinical-stage biotechnology company, develops novel cell therapies for the treatment of degenerative diseases in the United States and internationally. The company develops OpRegen, a retinal pigment epithelium cell replacement therapy, which is in Phase I/IIa clinical trial for the treatment of the dry age-related macular degeneration; OPC1, an oligodendrocyte progenitor cell therapy that is in Phase I/IIa multicenter clinical trial for the treatment of acute spinal cord injuries; and VAC2, an allogeneic cancer immunotherapy of antigen-presenting dendritic cells, which is in Phase I clinical trial to treat non-small cell lung cancer. It also offers Renevia, a facial aesthetics product. In addition, the company engages in the research and development of therapeutic products for retinal diseases, neurological diseases, and disorders and oncology. Lineage Cell Therapeutics, Inc. has a collaboration with Orbit Biomedical, Ltd. The company was formerly known as BioTime, Inc. and changed its name to Lineage Cell Therapeutics, Inc. in August 2019. Lineage Cell Therapeutics, Inc. was incorporated in 1990 and is headquartered in Carlsbad, California.
How the Company Makes MoneyLineage Cell Therapeutics makes money primarily through the development and commercialization of its cell therapy products. The company generates revenue from licensing agreements, collaborations, and research grants related to its proprietary technology and intellectual property. Revenue streams also include milestone payments and potential royalties from partnerships with pharmaceutical and biotechnology companies. These collaborations can help advance Lineage's therapeutic programs while providing financial support. The company may also seek funding through public and private investments to support its ongoing research and development efforts.
Lineage Therap Financial Statement Overview
Summary
Lineage Therap is on a path of revenue growth and maintains a strong balance sheet with low debt levels. However, persistent net losses and negative cash flows highlight significant challenges in achieving profitability and generating cash from operations. The company needs to focus on cost management and improving operational efficiency to enhance financial health.Income Statement
Lineage Therap shows signs of improvement in revenue with a growth rate of 6.19% from 2023 to 2024. However, profitability remains a challenge as evidenced by the negative EBIT and Net Income, despite a high gross profit margin of 96.48%. This indicates high operating expenses are eroding potential profits.45
Neutral
Balance Sheet
The company maintains a strong equity base with a Debt-to-Equity ratio of 0.03, indicating low leverage. However, the Return on Equity is negative due to persistent net losses, which raises concerns about the efficiency of equity utilization. The equity ratio of 68.00% shows a solid capital structure.50
Neutral
Cash Flow
Operating cash flow remains negative, indicating challenges in generating cash from core operations. The Free Cash Flow to Net Income ratio is unfavorable at 1.24, suggesting cash outflows exceed net income losses, partly due to substantial financing inflows in recent years.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 9.50M | 8.95M | 14.70M | 3.90M | 773.00K | Gross Profit |
| 9.16M | 8.27M | 13.97M | 2.47M | 388.00K | EBIT |
| -21.48M | -24.73M | -22.52M | -49.21M | -26.45M | EBITDA |
| -21.48M | -24.04M | -21.79M | -48.34M | -24.41M | Net Income Common Stockholders |
| -18.61M | -21.49M | -26.35M | -38.56M | -20.68M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 47.80M | 35.49M | 57.88M | 58.36M | 41.56M | Total Assets |
| 113.22M | 101.02M | 123.66M | 174.54M | 107.95M | Total Debt |
| 2.51M | 2.95M | 3.90M | 2.80M | 3.30M | Net Debt |
| -43.27M | -32.49M | -7.46M | -52.94M | -29.28M | Total Liabilities |
| 36.21M | 39.00M | 51.73M | 83.65M | 12.82M | Stockholders Equity |
| 77.01M | 63.42M | 73.34M | 92.22M | 96.20M |
| Cash Flow | Free Cash Flow | |||
| -23.09M | -29.24M | 646.00K | -23.91M | -19.82M | Operating Cash Flow |
| -23.09M | -28.57M | 1.06M | -23.56M | -19.75M | Investing Cash Flow |
| -2.31M | 46.45M | -46.16M | 9.74M | 13.04M | Financing Cash Flow |
| 35.86M | 6.42M | 1.63M | 36.93M | 29.86M |
Lineage Therap Technical Analysis
Negative
0.41
Price Trends
0.54
Negative
0.55
Negative
0.73
Negative
Market Momentum
-0.03
Negative
39.10
Neutral
52.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LCTX, the sentiment is Negative. The current price of 0.41 is below the 20-day moving average (MA) of 0.45, below the 50-day MA of 0.54, and below the 200-day MA of 0.73, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 39.10 is Neutral, neither overbought nor oversold. The STOCH value of 52.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LCTX.
Lineage Therap Risk Analysis
Lineage Therap disclosed 69 risk factors in its most recent earnings report. Lineage Therap reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lineage Therap Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
50 Neutral | $5.51B | 2.95 | -43.70% | 2.78% | 16.94% | 3.59% | |
46 Neutral | $110.52M | ― | -34.08% | ― | 5397.35% | 77.93% | |
45 Neutral | $93.63M | ― | -26.25% | ― | 6.19% | 22.05% | |
43 Neutral | $111.76M | ― | -31.94% | ― | ― | 30.76% | |
39 Underperform | $107.15M | ― | -98.10% | ― | -58.64% | -40.05% | |
39 Underperform | $104.62M | ― | -64.48% | ― | ― | -0.42% | |
34 Underperform | $119.53M | ― | -64.95% | ― | -100.00% | -244.85% |
* Healthcare Sector Average
Performance Comparison
LCTX
Lineage Therap
0.41
-0.73
-64.04%
CLLS
Cellectis SA
1.45
-1.19
-45.08%
EDIT
Editas Medicine
1.28
-4.32
-77.14%
NKTX
Nkarta
1.81
-5.58
-75.51%
NMRA
Neumora Therapeutics, Inc.
0.65
-9.76
-93.76%
CTNM
Contineum Therapeutics, Inc. Class A
4.62
-11.12
-70.65%
Lineage Therap Earnings Call Summary
Earnings Call Date: Mar 10, 2025 | % Change Since: -22.64% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive advancements in the OpRegen program and manufacturing capabilities, alongside financial challenges and ongoing development hurdles in the OPC1 program. The progress in partnerships and potential additional funding weigh positively, but the financial losses and program challenges balance the sentiment.Highlights
OpRegen Program Progress
The OpRegen program, a cell transplant for dry AMD, is progressing well with the GAlette Study managed by partners Roche and Genentech. The study has been enrolling for nearly two years, and recent actions by Roche indicate a positive direction. Additionally, a three-year clinical update from the Phase 1/2a trial shows that the benefits have persisted.
Manufacturing Advancements
Lineage has been investing in scalable cell therapy manufacturing, aiming to deliver millions of doses. This effort has generated new intellectual property and achieved specific milestones, differentiating Lineage's capabilities in the cell therapy field.
Financial Strength and Strategy
Lineage reported cash, cash equivalents, and marketable securities of $47.8 million as of December 31, 2024, with an extended runway into Q1 2027. The company's financing strategy includes a milestone warrant that could access an additional $36 million, contingent on clinical success.
Lowlights
Revenue and Operating Losses
Total revenues for the year were $5.9 million, a decrease from the previous year. Despite the progress, the company reported a net loss attributable to Lineage of $18.6 million for the year, although this is an improvement from the previous year's loss.
OPC1 Program Challenges
While the OPC1 program for spinal cord injury is progressing, there are necessary improvements to delivery methods and manufacturing processes before moving into a larger trial. The company is also waiting on grant applications for further funding.
Company Guidance
During the fourth quarter and full year 2024 conference call for Lineage Cell Therapeutics, CEO Brian Culley provided updates on the company's key programs and financial outlook. The focus was on OpRegen, their leading candidate for dry AMD with geographic atrophy, which is in a Phase 2a study called the GAlette Study. Culley noted the study's progress and highlighted Roche and Genentech's ongoing commitment, including obtaining RMAT designation and continuing site openings. He also discussed the scalability of their GMP manufacturing process, emphasizing its importance for allogeneic cell therapies, and mentioned the OPC1 program for spinal cord injuries, which is undergoing enhancements in delivery and manufacturing processes. CFO Jill Howe reported a cash position of $47.8 million as of December 31, 2024, with a financial runway into Q1 2027, and discussed the potential for $36 million in additional funding linked to OpRegen clinical milestones. For the fourth quarter, Lineage reported total revenues of $2.9 million, operating expenses of $7.8 million, and a net loss of $3.3 million or $0.02 per share.Lineage Therap Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Lineage Therap Secures $66M Funding Through Direct Offering
Positive
Jan 27, 2025
Lineage Cell Therapeutics announced the closing of the second tranche of its registered direct offering on January 27, 2025, following shareholder approval. The company has received $30 million in gross proceeds so far, with the potential for an additional $36 million from clinical milestone-linked warrants. The funds will be used for working capital, general corporate purposes, research, and development.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.