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Lineage Cell Therapeutics, Inc. (LCTX)
:LCTX
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Lineage Therap (LCTX) AI Stock Analysis

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LCTX

Lineage Therap

(NYSE MKT:LCTX)

Rating:55Neutral
Price Target:
$1.00
▼(-18.03% Downside)
Lineage Therap's overall stock score reflects a challenging financial performance with ongoing losses and negative cash flow, which is a significant concern. However, the technical analysis shows positive momentum, suggesting market optimism. Valuation remains a concern due to negative earnings, but recent corporate events and strategic partnerships provide a potential upside.
Positive Factors
Financial Stability
The company ended the period with $42.3M in cash, which is expected to provide runway into 1Q27 and may be extended by additional collaboration agreements or milestones from Roche.
Product Differentiation
OpRegen data from Roche/Genentech continue to provide major and significant differentiation versus currently approved geographic atrophy drugs.
Research Collaboration
Lineage announced a research collaboration with William Demant Invest to help fund the advancement of ReSonance through preclinical studies for hearing loss.
Negative Factors
Market Competition
The data did not disappoint at all, and continue to provide major and significant differentiation vs. currently approved GA drugs, which only slow the progression of GA; this is with only one infusion of cells.
Operational Risks
The DOSED study represents the key gating item for Lineage's OPC1 program.

Lineage Therap (LCTX) vs. SPDR S&P 500 ETF (SPY)

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 Therap generates revenue primarily through the development and commercialization of its cell therapy products. Key revenue streams include funding from partnerships and collaborations with pharmaceutical companies, grants, and potential product sales upon regulatory approval. The company often engages in strategic alliances that provide upfront payments, research funding, and milestone payments tied to the achievement of specific development goals. Additionally, the company may receive royalties on future sales of any products that successfully reach the market. Lineage's focus on clinical trials and regulatory approvals also positions it to benefit from governmental and institutional funding aimed at advancing innovative medical treatments.

Lineage Therap Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with significant progress in the OpRegen and OPC1 programs, including promising clinical results and strategic partnerships. However, financial challenges, including a substantial impairment expense and warrant liabilities, contributed to a notable net loss.
Q2-2025 Updates
Positive Updates
OpRegen Program Positive Developments
The OpRegen program, an off-the-shelf RPE transplant for dry AMD, showed consistent and durable treatment effects with a 20-letter difference in visual acuity over 3 years between treated and untreated eyes. There are now four independent groups reporting vision gains from RPE transplants, including Lineage's partners Roche and Genentech.
New Strategic Direction and Partnerships
Lineage plans to capitalize on its directed differentiation expertise and recent manufacturing achievements to expand into new therapeutic areas. Partnership with Roche and Genentech provides clinical and development expertise, financial backing, and commercial infrastructure for a global ophthalmology product launch.
OPC1 Program Progress
The first participant in the DOSED study for OPC1, a spinal cord injury treatment, was successfully administered, marking an important milestone. New delivery systems and improved manufacturing processes are being tested, potentially enhancing safety and efficacy.
Financial Position and Revenue Growth
Lineage's cash position was $42.3 million as of June 30, 2025, expected to support operations into Q1 of 2027. Total revenues were $2.8 million, a net increase of $1.4 million compared to the same period in 2024.
Negative Updates
Impairment Expense and Loss
A $14.8 million non-cash expense was recognized for the loss on impairment of the intangible asset related to the VAC platform, contributing to a net loss of $30.5 million compared to $5.8 million in the same period in 2024.
Challenges in Biotech Market
The biotech markets remain challenging, affecting cost of capital and necessitating a focus on non-dilutive funding strategies.
Warrant Liability Impact
The quarterly fair value remeasurement of the warrant liabilities resulted in a $12.7 million expense due to an increase in share price.
Company Guidance
During the Lineage Cell Therapeutics Second Quarter 2025 Conference Call, several key metrics and updates were provided, highlighting the company's strategic and operational progress. Notably, the OpRegen program for dry AMD with geographic atrophy demonstrated a mean gain of vision of 9 letters in treated eyes over three years, compared to an 11-letter loss in untreated eyes, showing a 20-letter difference in mean visual acuity. This suggests potential for a one-time functional cure. Additionally, Lineage's financials for the second quarter of 2025 reported total revenues of $2.8 million, a significant rise from $1.4 million in the same period in 2024. Operating expenses were $22.5 million, including a noncash impairment expense on the VAC platform, leading to a net loss of $30.5 million or $0.13 per share. The company has $42.3 million in cash reserves, projected to support operations into Q1 2027, with potential for $37 million from Roche and Genentech following trial advancements. Lineage is also pursuing nondilutive funding strategies, including milestone payments and grants, to sustain and expand its pipeline, such as the OPC1 spinal cord injury program and other emerging therapeutic areas.

Lineage Therap Financial Statement Overview

Summary
Lineage Therap's financials reflect challenges typical of a biotechnology company. Despite a strong gross profit margin of 97%, the company struggles with negative net profit margins and free cash flow, relying on external funding. The balance sheet is stable with low leverage, but negative returns on equity indicate inefficiencies.
Income Statement
45
Neutral
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
60
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.91M9.50M8.95M14.70M3.90M773.00K
Gross Profit10.65M9.16M8.27M13.97M2.47M388.00K
EBITDA-19.93M-20.87M-24.04M-21.79M-48.34M-24.41M
Net Income-40.91M-18.61M-21.49M-26.35M-43.02M-20.68M
Balance Sheet
Total Assets90.80M113.22M101.02M123.66M174.54M107.95M
Cash, Cash Equivalents and Short-Term Investments42.29M47.80M35.49M57.88M58.36M41.56M
Total Debt2.15M2.51M2.95M3.90M2.80M3.83M
Total Liabilities43.69M36.21M39.00M51.73M83.65M12.82M
Stockholders Equity48.38M78.38M63.42M73.34M92.22M96.20M
Cash Flow
Free Cash Flow-22.85M-23.66M-29.24M646.00K-23.91M-19.82M
Operating Cash Flow-22.56M-23.09M-28.57M1.06M-23.56M-19.75M
Investing Cash Flow8.41M-2.31M46.45M-46.16M9.74M13.04M
Financing Cash Flow26.47M35.86M6.42M1.63M36.93M29.86M

Lineage Therap Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.22
Price Trends
50DMA
1.06
Positive
100DMA
0.81
Positive
200DMA
0.70
Positive
Market Momentum
MACD
0.06
Negative
RSI
59.27
Neutral
STOCH
32.35
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 1.22 is above the 20-day moving average (MA) of 1.12, above the 50-day MA of 1.06, and above the 200-day MA of 0.70, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 59.27 is Neutral, neither overbought nor oversold. The STOCH value of 32.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$193.22M-48.36%333.74%
55
Neutral
$267.18M-70.12%76.43%-35.66%
51
Neutral
$7.86B-0.33-41.57%2.23%23.26%-2.03%
51
Neutral
$231.09M-188.58%-41.97%-20.86%
39
Underperform
$150.57M-26.94%26.33%
39
Underperform
$293.04M-29.24%-125.92%
33
Underperform
$280.17M-89.37%9.84%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LCTX
Lineage Therap
1.23
0.33
36.67%
CLLS
Cellectis SA
2.59
0.29
12.61%
EDIT
Editas Medicine
2.47
-1.03
-29.43%
NKTX
Nkarta
2.10
-3.29
-61.04%
NMRA
Neumora Therapeutics, Inc.
1.74
-9.25
-84.17%
CTNM
Contineum Therapeutics, Inc. Class A
11.17
-6.50
-36.79%

Lineage Therap Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Lineage Therap Partners with WDI for Hearing Loss Research
Positive
Aug 26, 2025

Lineage Cell Therapeutics announced a multi-year research collaboration with William Demant Invest 2 Aps to advance its auditory neuronal cell transplant program, ReSonance, aimed at treating hearing loss. The agreement, established on August 22, 2025, involves WDI funding up to $12 million over three years to achieve preclinical readiness for potential human clinical trials, with both parties sharing joint ownership of project results.

Executive/Board ChangesShareholder Meetings
Lineage Therap Holds Annual Meeting, Elects Directors
Neutral
Jul 2, 2025

On June 26, 2025, Lineage Therap held its Annual Meeting, where shareholders elected seven directors to the board, ratified the appointment of Baker Tilly US, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, approved executive compensation on an advisory basis, and approved an EIP Amendment. These decisions reflect shareholder support for the company’s current leadership and strategic direction, potentially impacting its governance and financial practices.

Product-Related AnnouncementsBusiness Operations and Strategy
Lineage Therap Reports Promising OpRegen Study Results
Positive
Jun 23, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 26, 2025