Lineage Therap (LCTX) AI Stock Analysis

• Market Cap: $213.56M
• Dividend Yield: N/A
• Average Volume (3M): 3.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 19.42%
• EPS Growth: 40.83%
• Country: US
• Employees: 70
• Sector: Healthcare
• Sector Strength: 42
• Industry: Biotechnology
• EPS (TTM): -0.02
• Shares Outstanding: 228,356,300
• 10 Day Avg. Volume: 6,251,304
• 30 Day Avg. Volume: 3,109,382
• PEG Ratio: -1.00
• Price to Book (P/B): 2.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.63
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 5.04
• Enterprise Value/Gross Profit: 18.45
• Enterprise Value/Ebitda: -2.00
• 1Y Price Target: $4.13
• Price Target Upside: 339.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 60 Neutral
• Price Target: $1.00 ▲(6.38%Upside)

Lineage Cell Therapeutics exhibits strengths in technical analysis and promising earnings call developments, particularly in key programs like OpRegen and OPC1. However, financial and valuation challenges typical of biotech firms weigh down the score, with negative profitability and reliance on external funding posing risks.

Positive Factors

Clinical Trial Results

The benefits observed in the Phase 1/2a study remain after three years post-dosing, supporting the potential of OpRegen as a one-time therapy that can alter the course of this progressive disease.

Financial Stability

Management believes the current cash position provides runway into 1Q27, indicating financial stability for the company.

Strategic Partnerships

With Roche’s backing, Lineage remains well ahead in clinical progress, building momentum in the field.

Negative Factors

Investment Risks

Genentech moving into a randomized controlled trial could trigger warrants worth an additional $36M in gross proceeds.

Market Competition

Management views the addition of two proprietary surgical delivery devices to the Phase 2a study as a key advantage, noting that enhanced delivery deepens its moat in RPE transplantation by further distancing its platform from competitors.

Regulatory Challenges

Partner Roche/Genentech continues to enroll its ongoing study to optimize delivery of OpRegen, which could lead to significant advancements without regulatory requirements for further trials.

Lineage Therap Business Overview & Revenue Model

Company Description

Lineage Cell Therapeutics, Inc. (LCTX) is a biotechnology company focused on the development and commercialization of novel therapies based on its proprietary cell-based technology. Operating within the healthcare sector, the company specializes in regenerative medicine, aiming to treat a variety of degenerative diseases. Its core products include cell therapy programs for indications such as dry age-related macular degeneration, spinal cord injuries, and cancer immunotherapy. By leveraging its expertise in pluripotent cell technology, Lineage Cell Therapeutics seeks to pioneer advancements in cell therapy and regenerative medicine.

How the Company Makes Money

Lineage Cell Therapeutics makes money primarily through the development and commercialization of its cell-based therapies. The company generates revenue through strategic partnerships, licensing agreements, and collaboration with other biotechnology and pharmaceutical companies. These partnerships often involve upfront payments, milestone payments, and potential royalties on sales of developed products. Additionally, Lineage may engage in government or private grants and contracts to support its research and development efforts. The company's ability to advance its product candidates through clinical trials and receive regulatory approval is a significant factor in its potential earnings, as successful commercialization can lead to substantial revenue streams from product sales.

Lineage Therap Financial Statement Overview

Summary

Lineage Therap's financial performance reflects typical challenges in the biotechnology sector with a strong gross profit margin but negative net profit margin and inconsistent revenue growth. The balance sheet is moderately strong with low leverage, but negative ROE and cash flow highlight ongoing struggles to achieve profitability.

Income Statement

Lineage Therap's income statement reveals challenges in achieving profitability with negative EBIT and EBITDA margins despite a slight increase in revenue. The gross profit margin remains relatively strong at around 97% for the TTM. However, the net profit margin is negative, and revenue growth has been inconsistent, highlighting the company's struggle to convert sales into profits.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio of about 0.03, indicating low leverage. The equity ratio stands at 69.5%, reflecting significant equity financing. However, the return on equity is negative due to ongoing net losses, suggesting inefficiencies in generating returns from shareholder capital.

Cash Flow

The cash flow statement indicates negative free cash flow, with a slight improvement in operating cash flow compared to net income. The free cash flow to net income ratio is negative, showing challenges in converting earnings into cash flow. Financing activities have been a key source of cash, suggesting reliance on external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.56M	9.50M	8.95M	14.70M	3.90M	773.00K
Gross Profit	9.29M	9.16M	8.27M	13.97M	2.47M	388.00K
EBITDA	-20.89M	-20.87M	-24.04M	-21.79M	-48.34M	-24.41M
Net Income	-16.21M	-18.61M	-21.49M	-26.35M	-38.56M	-20.68M
Balance Sheet
Total Assets	111.75M	113.22M	101.02M	123.66M	174.54M	107.95M
Cash, Cash Equivalents and Short-Term Investments	47.91M	47.80M	35.49M	57.88M	58.36M	41.56M
Total Debt	2.24M	2.51M	2.95M	3.90M	2.80M	3.30M
Total Liabilities	34.10M	36.21M	39.00M	51.73M	83.65M	12.82M
Stockholders Equity	77.66M	78.38M	63.42M	73.34M	92.22M	96.20M
Cash Flow
Free Cash Flow	-22.52M	-23.66M	-29.24M	646.00K	-23.91M	-19.82M
Operating Cash Flow	-22.20M	-23.09M	-28.57M	1.06M	-23.56M	-19.75M
Investing Cash Flow	-367.00K	-2.31M	46.45M	-46.16M	9.74M	13.04M
Financing Cash Flow	26.88M	35.86M	6.42M	1.63M	36.93M	29.86M

Lineage Therap Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LCTX, the sentiment is Positive. The current price of 0.94 is above the 20-day moving average (MA) of 0.81, above the 50-day MA of 0.62, and above the 200-day MA of 0.66, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 64.71 is Neutral, neither overbought nor oversold. The STOCH value of 61.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LCTX.

Lineage Therap Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	¥345.58B	10.59	-2.88%	2.67%	11.80%	-6.84%
LCTX	60 Neutral	$213.56M	―	-21.40%	―	19.42%	40.83%
EDIT	58 Neutral	$190.87M	―	-140.82%	―	-48.37%	-44.70%
CLLS	48 Neutral	$106.12M	―	-58.55%	―	825.97%	38.32%
NKTX	39 Underperform	$117.79M	―	-26.10%	―	―	30.76%
CTNM	39 Underperform	$106.33M	―	-91.32%	―	-100.00%	-244.85%
NMRA	33 Underperform	$122.43M	―	-79.05%	―	―	-0.42%

Lineage Therap Corporate Events

Lineage Therap Reports Promising OpRegen Study Results

Lineage Cell Therapeutics announced the 36-month visual acuity results from a Phase 1/2a clinical study of RG6501 (OpRegen) in patients with geographic atrophy secondary to age-related macular degeneration. The results, presented at Clinical Trials at the Summit 2025, showed sustained improvement in visual acuity and retinal structure in patients who received extensive OpRegen cell therapy coverage, suggesting potential long-term benefits of the therapy. These findings could enhance Lineage’s position in the biotechnology industry by demonstrating the efficacy of their cell therapy in treating advanced ophthalmic conditions.

The most recent analyst rating on (LCTX) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Lineage Therap stock, see the LCTX Stock Forecast page.