Lineage Cell Therapeutics(LCTX) - 2023 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported cash, cash equivalents, and marketable securities totaling $41.3 million as of September 30, 2023, which is expected to support operations into the first quarter of 2025, one quarter longer than previously anticipated [34] - Total revenues for the third quarter were $1.2 million, a decrease of $1.8 million compared to approximately $3 million for the same period in 2022, primarily due to lower collaboration and licensing revenue from the Roche agreement [35] - Total operating expenses were $7.8 million, a slight decrease from $8 million in the same period in 2022, with R&D expenses increasing to $3.7 million from $3.6 million [36] - The net loss was $7.1 million or $0.04 per share, compared to a net loss of $6.1 million or $0.04 per share for the same period in 2022 [38] Business Line Data and Key Metrics Changes - The ANP1 program for hearing loss has advanced to the next phase of preclinical development, with positive initial proof of concept results [22][24] - The VAC platform is being treated as a business development project rather than an internal clinical development program due to the current biotech environment [18] Market Data and Key Metrics Changes - The global spinal cord therapy market is referenced upwards of $7 billion to $10 billion, indicating significant market potential for the company's spinal cord injury program [62] Company Strategy and Development Direction - The company is focusing on maintaining financial discipline to navigate the challenging biotech environment while continuing to advance its key programs [29] - The collaboration with Eterna Therapeutics aims to leverage proprietary process development capabilities combined with external cell engineering technologies to create novel product candidates [27][28] Management's Comments on Operating Environment and Future Outlook - Management noted that the ongoing conflict in Israel has not materially impacted operations, and the company remains committed to advancing its business [32] - The company is optimistic about the potential of its lead asset, OpRegen, and is eager to complete the final steps for the OPC1 IND amendment [32][58] Other Important Information - The company has patented new process development methods to support long-term exclusivity for its pipeline, including a patent for large-scale production of retinal pigment epithelial cells [57] Q&A Session Summary Question: Inquiry about OpRegen Phase 2a and its impact on study conduct - Management indicated that the initial clinical outcomes could ease conversations between investigative sites and patients, potentially facilitating quicker enrollment [14] Question: Timeline for preclinical data on ANP1 and interest in the VAC platform - Management stated that functional preclinical data for ANP1 is expected in 2024, and the VAC platform is being pursued through partnerships rather than internal development [16][18] Question: Status of tech transfer at Roche - Management confirmed that tech transfer is on target, but specific details could not be disclosed [71]