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Lineage Cell Therapeutics, Inc. (LCTX)
:LCTX
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Lineage Therap
(NYSE MKT:LCTX)
49Neutral
Positive Factors
Clinical Advancements
Genentech moving into a randomized controlled trial could trigger warrants worth an additional $36M in gross proceeds.
Partnerships
Roche's backing keeps Lineage well ahead in clinical progress, building momentum in the field.
Regenerative Medicine
Growing interest in cellular therapy and regenerative medicine beyond oncology further validates Lineage’s strategy.
Negative Factors
Financial Adjustments
The company's 12-month price target has been lowered due to dilution from recent financing activities.
Financial Projections
The company has strengthened its balance sheet with substantial financing, providing a runway into 2027 with the potential for further extension.
Lineage Therap (LCTX) vs. S&P 500 (SPY)
Market Cap
$109.41M
Dividend YieldN/A
Average Volume (3M)1.10M
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth6.19%
EPS Growth22.05%
CountryUS
Employees70
SectorHealthcare
Sector Strength48
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.02
Shares Outstanding228,356,300
10 Day Avg. Volume781,565
30 Day Avg. Volume1,103,221
Financial Highlights & Ratios
PEG Ratio-0.51
Price to Book (P/B)1.24
Price to Sales (P/S)0.00
P/FCF Ratio-4.28
Enterprise Value/Market Cap0.52
Enterprise Value/Revenue1.77
Enterprise Value/Gross Profit6.36
Enterprise Value/Ebitda-0.66
Forecast
1Y Price Target
$4.13Price Target Upside778.72% 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 |
| 78.38M | 63.42M | 73.34M | 92.22M | 96.20M |
| Cash Flow | Free Cash Flow | |||
| -23.66M | -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
Neutral
0.47
Price Trends
0.47
Negative
0.54
Negative
0.69
Negative
Market Momentum
>-0.01
Negative
50.85
Neutral
47.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LCTX, the sentiment is Neutral. The current price of 0.47 is above the 20-day moving average (MA) of 0.46, below the 50-day MA of 0.47, and below the 200-day MA of 0.69, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.85 is Neutral, neither overbought nor oversold. The STOCH value of 47.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $5.22B | 3.55 | -44.39% | 2.82% | 15.40% | -0.09% | |
51 Neutral | $108.89M | ― | -58.55% | ― | 825.97% | 38.32% | |
49 Neutral | $109.41M | ― | -26.25% | ― | 6.19% | 22.05% | |
43 Neutral | $128.91M | ― | -140.82% | ― | -48.37% | -44.70% | |
39 Underperform | $143.33M | ― | -31.94% | ― | ― | 30.76% | |
39 Underperform | $99.09M | ― | -64.95% | ― | -100.00% | -244.85% | |
33 Underperform | $112.01M | ― | -79.05% | ― | ― | -0.42% |
* Healthcare Sector Average
Performance Comparison
LCTX
Lineage Therap
0.47
-0.62
-56.88%
CLLS
Cellectis SA
1.41
-1.65
-53.92%
EDIT
Editas Medicine
1.50
-4.50
-75.00%
NKTX
Nkarta
1.94
-4.94
-71.80%
NMRA
Neumora Therapeutics, Inc.
0.68
-8.99
-92.97%
CTNM
Contineum Therapeutics, Inc. Class A
3.81
-11.50
-75.11%
Lineage Therap Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: 0.00%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant progress in OpRegen and OPC1 programs, coupled with a major manufacturing milestone that positions Lineage for further growth and partnerships. However, uncertainties around Genentech's decision-making timeline and data access, alongside potential enrollment challenges for OPC1, present notable concerns.Q1-2025 Updates
Positive Updates
OpRegen Program Progress
OpRegen, an allogeneic RPE cell transplant for dry AMD, shows promising results with anatomical and functional benefits lasting up to two years from one-time surgical delivery. The Phase 2a GAlette Study is progressing well, with Genentech continuing to invest in the program by acquiring RMAT designation and proprietary surgical delivery devices.
Manufacturing Milestone Achieved
Lineage achieved a GMP production run capable of producing millions of doses of product from a single starting cell line, demonstrating capability across multiple cell types and lines. This positions the company for new partnership opportunities.
OPC1 Program Advancements
A new delivery device for OPC1, designed to enhance safety and usability, is being tested. The device allows cell administration without stopping patient respiration, improving the procedure. Enrollment for the DOSED study is anticipated to begin in June.
Financial Stability
Lineage reported a cash position of $47.9 million as of March 31, 2025, expected to support operations into Q1 2027. The company also has approximately $37 million in warrant capital and is pursuing additional funding sources.
Negative Updates
Delayed Decision on OpRegen Advancement
There is no timeline available for Genentech's decision to advance OpRegen into a controlled study, creating uncertainty about the program's next steps.
Limited Access to GAlette Study Data
Lineage does not have access to data from the ongoing GAlette Study, relying on updates from Genentech for progress insights.
OPC1 Trial Enrollment Challenges
Enrollment for the OPC1 DOSED study may face challenges, as the first three patients must be thoracic injuries, which could affect the study's pace.
Company Guidance
During the first quarter 2025 conference call, Lineage Cell Therapeutics provided guidance on several key metrics and developments. The company reported total revenues of $1.5 million, a slight increase from the previous year's $1.4 million, with operating expenses of $8 million, slightly down from $8.1 million in 2024. The net loss was reduced to $4.1 million, or $0.02 per share, compared to a net loss of $6.5 million, or $0.04 per share, in the same period of 2024. Cash reserves stood at $47.9 million, expected to support operations until Q1 2027. Lineage highlighted their manufacturing capabilities, potential partnerships, and upcoming Phase 2a and 1/2a clinical data for their OpRegen program. Additionally, they discussed advancements in the OPC1 program for spinal cord injury, aiming to begin patient enrollment in June 2025.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.