Lineage Cell Therapeutics(LCTX) - 2022 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenues for Q1 2022 were approximately $5.2 million, an increase of $4.8 million from the same period in 2021, primarily due to licensing fees from the Roche collaboration agreement [25] - Total operating expenses for the quarter were approximately $11.5 million, an increase of approximately $4.2 million compared to the same period in 2021, driven by a $3.5 million non-recurring accrual related to a potential settlement of the 2019 Asterias merger litigation [26] - The net loss attributable to Lineage for Q1 2022 was $7.1 million or $0.04 per share, with a loss from operations of approximately $6.4 million, a decrease of $0.7 million compared to the same period in 2021 [27] Business Line Data and Key Metrics Changes - The company is working on multiple clinical and regulatory milestones, including initiating a clinical safety trial of a new delivery device for OPC1 and submitting an IND for the VAC2 program [10][11] - The company reported significant progress in its clinical programs, including the presentation of 10-year safety data from the OPC1 clinical trial, indicating no medical or neurological complications [22][23] Market Data and Key Metrics Changes - The company has approximately $78 million in cash and cash equivalents as of Q1 2022, providing multiple years of cash runway to support its programs [8][28] - The company is adapting to the current biotech landscape by focusing on communication, operations, and business development, aiming to enhance its market position [14][20] Company Strategy and Development Direction - The company believes it is well-positioned to navigate the current biotech bear market due to its cash position, near-term milestones, and fundamental profile [7][12] - The company is emphasizing business development and exploring partnerships to advance its assets, particularly in the NK cell space and other therapeutic areas [18][60] Management's Comments on Operating Environment and Future Outlook - Management commented on the overreaction in the biotech sector and expressed confidence in the company's ability to outperform peers in the coming years [6][7] - The company is aware of supply chain disruptions but has not experienced significant impacts, maintaining a focus on in-house manufacturing [24] Other Important Information - The company participated in the Red Bull Wings for Life World Run to raise awareness and funds for spinal cord research, highlighting its commitment to community engagement [23] - The company plans to publish additional papers on OPC1 and other clinical studies in the coming months, further supporting its research credibility [23] Q&A Session Summary Question: Can you provide more color on the settlement of the Asterias litigation? - The company has agreed in principle to a settlement of $10.7 million, with Lineage contributing $3.5 million, which will result in the dismissal of the lawsuit without any admission of liability [35] Question: How does the company reconcile its two-year runway with the growing pipeline? - The company benefits from economies of scale in manufacturing, allowing it to expand its pipeline with only marginal increases in spending [36] Question: Is the device for the OPC1 study ready, and are the doctors trained? - Pre-clinical work has been completed, and while formal training is ongoing, the surgeons have experience with the device [40] Question: What is the strategy for the new programs OPC1 and ANP1? - The company is working on optimizing delivery and scaling up cells for commercial viability, with plans for IND submissions [47] Question: How does the company view partnership opportunities? - The company is open to various partnership strategies, balancing in-house development with external collaborations to maximize value [49] Question: Can you provide an update on the Immunomic Therapeutics collaboration? - The collaboration focuses on using the VAC platform for delivering antigens, with the potential for additional valuable partnerships in the future [63]