Friday, March 12, 2021
Lineage Cell Therapeutics (LCTX)
Q4 2020 EPS: Catalysts Rich 2021 Ahead
Lineage Cell Therapeutics is a clinical-stage biotechnology company developing novel cell therapies for unmet medical needs. Lineage’s programs are based on its robust proprietary cell-based therapy platform and associated in-house development and manufacturing capabilities. With this platform Lineage develops and manufactures specialized, terminally differentiated human cells from its pluripotent and progenitor cell starting materials. These differentiated cells are developed to either replace or support cells that are dysfunctional or absent due to degenerative disease or traumatic injury or administered as a means of helping the body mount an effective immune response to cancer. Lineage’s clinical programs are in markets with billion dollar opportunities and include three allogeneic (“off-the-shelf”) product candidates: (i) OpRegen®, a retinal pigment epithelium transplant therapy in Phase 1/2a development for the treatment of dry age-related macular degeneration, a leading cause of blindness in the developed world; (ii) OPC1, an oligodendrocyte progenitor cell therapy in Phase 1/2a development for the treatment of acute spinal cord injuries; and (iii) VAC, an allogeneic dendritic cell therapy platform for immuno-oncology and infectious disease, currently in clinical development for the treatment of non-small cell lung cancer. For more information, please visit www.lineagecell.com or follow the Company on Twitter @LineageCell.
Ahu Demir, Ph. D., Biotechnology Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Full Year 2020 financials. Lineage reported net loss of $20.6 million or ($0.14) EPS. The company has $41.6 million cash, cash equivalents, and marketable securities as of December 31, 2020. Total revenues were $1.8 million and total operating loss was $27.9 million – $12.3 million in R&D expenses and $15.6 million in SG&A expenses. We estimated $1.9 million in revenue, $12.3 million in R&D expenses, and $16.9 million in SG&A expenses and implemented the changes in our model. The company also had a good start to the year with the sale of additional marketable securities resulting in net proceedings above $21 million. With this, the company now has $57 million in cash only (161 million shares outstanding) bringing cash runway to 2023.
Value-generating inflection points. We expect multiple inflection points to generate value for the shares in 2021 selected catalysts include a) Interim data analysis from Cohort 4 OpRegen program 3-months data in Q1 and 6-months data at the annual Association for Research in Vision and Ophthalmology (ARVO) meeting on May 1-7, b) conducting regenerative medicine advanced therapy (RMAT) meeting with …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
