Lineage Cell Therapeutics(US:LCTX)2020-11-05 04:08Financial Data and Key Metrics Changes - Total revenues for Q3 2020 were $600,000, consistent with the same period last year, with an increase of $200,000 in royalties offset by decreases in grant revenues and research product sales [64][65] - Total operating expenses decreased to approximately $7.2 million from $8.9 million in Q3 2019, with R&D expenses down to $3.6 million from $4.3 million [66][67] - Net loss attributable to Lineage for Q3 2020 was $7.8 million or $0.05 per share, compared to a net loss of $16.5 million or $0.11 per share in the same period in 2019 [73] Business Line Data and Key Metrics Changes - R&D expenses for OpRegen decreased by $1.5 million due to reduced manufacturing activity, while VAC program expenses increased by $1.8 million due to a signature fee related to Cancer Research UK [66][67] - G&A expenses decreased to $3.6 million from $4.6 million, primarily due to reductions in compensation and merger-related expenses [69] Market Data and Key Metrics Changes - The company estimates nearly 2 million people in the US suffer from advanced dry AMD, representing a substantial market opportunity for OpRegen, projected to be several billion dollars [17][18] - The VAC2 program is positioned to address non-small cell lung cancer, with potential market opportunities exceeding $1 billion [83] Company Strategy and Development Direction - The company aims to grow into a leading allogeneic cell therapy company, focusing on generating compelling clinical data and developing pre-commercial manufacturing capabilities [8][11] - Lineage is modernizing its manufacturing processes to enhance the commercial viability of its products and facilitate partnerships with larger corporations [56][81] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about upcoming milestones, including data releases for OpRegen and updates on the OPC1 program, which are expected to create significant shareholder value [11][60] - The company is well-capitalized with $38 million in cash and marketable securities, allowing it to fund operations into 2022 [74][75] Other Important Information - The company has not conducted traditional equity financing in over three years, relying instead on cost reductions and timely sales of marketable securities [80] - Lineage is exploring potential grant support from California's Proposition 14, which could provide non-dilutive capital for its programs [92] Q&A Session Summary Question: Can you provide clarity on the OPC1 program and its manufacturing improvements? - Management plans to share specific data on manufacturing improvements in early December, highlighting advancements in scale and purity [93][94] Question: How does the recent AbbVie fast track for spinal cord injury impact Lineage? - Management views AbbVie's involvement as validation of the commercial opportunity in spinal cord injury, but emphasizes the unique advantages of their oligodendrocyte therapy [95][99] Question: Will there be updates on the OpRegen data and patient outcomes? - A comprehensive update on OpRegen data will be provided, focusing on patients that represent future customers for the therapy [108] Question: Are there plans to explore other cancer types for the VAC2 program? - Management is considering other tumor types for the VAC2 program, as the current focus on non-small cell lung cancer may not be the most effective application for their antigen [111]