Lineage Cell Therapeutics (LCTX) 9 Nov 232023 Q3 Earnings call transcript

Welcome to the Lineage Cell Therapeutics Third Quarter 2023 Conference Call. At this time, all participants are in a listen-only mode. An audio webcast of this call is available on the Investors section of Lineage's website at www.lineagecell.com. This call is subject to copyright and is the property of Lineage and recordings, reproductions or transmissions of this call without the expressed written consent of Lineage are strictly prohibited.

As a reminder, today's call is being recorded. to of host Investor like Ioana today's now Head Hone, Relations would introduce for your call, I at Lineage. Ms. ahead. go please Hone,

only views Thank questions contain found federal statements our note and and that the of A forward-looking from afternoon, today, website. November as the securities performance results risks historical forward-looking within laws. statements you, Please for by and earlier significant indicated reflect statements. uncertainties.The discussion Investors expectations Jordan. us. can responses to section considered fact XXXX, joining our be and not was or thank issued and remarks press may this the statements, quarter company's forward-looking to differ will subject that results such meaning which third you reporting should be materially management's Statements today's X, your of XXXX on financial today made are are release Good of of during actual

Affairs. our factors I'd For XX-K to President differ, our any of quarterly factors Howe, and as Clinical in a our filings, most only report performance statements like you call company's Senior the Hogge, to cautionary release undue are risk in results turn refer Jill on Executive section Culley, qualified We'd and that, and Medical to are of Form on the subsequent Officer; Financial speak the recent our over reliance today that to the you which forward-looking statements, forward-looking company's XX-Q. Vice Brian. not its Officer; and and discussion filings.With described on caution SEC Chief us Brian could today's Gary we With the statements Chief SEC and or today by press cause its including of in reports annual certain Form to place

that have reasons everything and important and us I'm our about with remains the taking excited report most Ioana, continue be pleased time on We development future. everyone. many good to today. to you, to join to track Thank afternoon, the plans, appreciate you we

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additional This confidence partners, to program. lead expected OpRegen issued from look USPTO the enhances XXXX, OpRegen, licensed of on were and further we pigment has all July As well in additional development which clinical exclusivity In of of had at the over for time. date process retinal months.Additionally, September, we data as forward is inventing new support fully conducted maintenance XX in a lesion of of our production programs, of transplant patients which continued Phase gains parallel both blood updates to patent retinal observed Genentech, asset, visual the with entitled XX, These OpRegen. X from and our acuity suspension a to a we been value reminder, evidence including Roche's patenting and continue and future containing to has Lineage improvement of long exclusively an we cell GA I/IIA large-scale demonstrated expiration improvements data Phase these pipeline of study, epithelial patent, the the our believe surgical periods outer announcements, methods in the IIA which program enrolled extensive cells. for the who study, coverage or have us as structure currently enrolling.In Roche data retinal greater OpRegen with give structure and

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our to happy we geographic the of from points competing including an Israel better authorizations And a for your unmet as OpRegen. on pace most project cell Two, to the to X agents.So have active a with have with business. more updates. the relationship Jill material development. our frequent a so can the advancing for And that, program need thing to to times. are hand difficult reduce call with our summarize impact I overall their is year extremely asset this in continues discussion opportunity is business on of OPCX is a despite that steps will three, marketing to eager what of which One, offer our for had Roche of these advanced investment sometimes instead to to able I study BD treatment clinical initiating we've can shareholders and about moving of believe And Lineage possible it's in important an such by to when VACX the we commitment clinical in final IND we continue keep made the atrophy, amendment own.But forward progress divert Genentech, complete we our recent not program our strategic in to today. the in Roche expectations a we that think to represent the And second transplant decision been And the reset the with Genentech, key have events lead and we be being financials. demonstrated

everyone. I'm we Beginning this Brian, capitalized well conduct to Thanks, afternoon, to Brian activities, that just sheet, good with which our report be pleased near-term outlined. to and balance continue

the one current during $XX.X forward.Next, you we marketable operating the will of our totaled Our into cash continue of cash, review may have some identified look to of runway, XX, This and to going planned our we operations million, as expected we equivalents is and further which XXXX, and securities opportunities reported have quarter third quarter support our will September forward extend is first expected is quarter to and results. to XXXX. efficiencies due which and which quarter

primarily revenue primarily increase driven revenues the from Roche deferred generated from period in a $X collaboration $X.X parties, in $X.X Total XXXX. $X.X program, net and by of licensing research decrease our services collaboration revenues compared and million compared royalties, for $X.X Our as a revenues the $X.X higher increase other preclinical program-related were million million consulting and increases and reduced from $X.X agreement. activities.G&A overall $X in Operating is for primarily approximately $X.X The to million, million was of These million, same development to licensing of fees, $X.X primarily a was Loss of same expenses. recruiting-related primarily were XXXX. approximately to expenses as in offset to net net recognized million were driven million, $X.X related period decrease million to compared primarily for and decrease the in lower revenues grants. of of in were million support a due were for VAC R&D expenses were expenses million, general administrative an compared the as to XXXX. expenses by $X.X incurred an by The compared same as $X.X million development operations programs. period $X.X manufacturing operating a period decrease costs and to expenses research million million costs from $X.X decrease The million net for in $X.X reduction are for comprised decrease to expenses the XXXX. same and and million expenses.Total period third in is research and the same expenses increase XXXX. $X $X.X as OPCX million by million, in

progress spending for continue to milestones, our biotech important to that from investments we allow will meaningful programs. in to us maintaining continues, make value our the to in shareholders plan expense believe discipline period XXXX.The Other As a recognition included our rate reach a fair interest same spending discipline, due million other million our loss equity in $X.X other $X.XX loss noncash $X.X or $X.XX fluctuations $X.X primarily share to loss to was driven a and expenses XXXX. or our income this million of million period per was for compared changes our exchange securities was income have per the which by debt market maintained the expenses impacting to for marketable the with associated driven marketable of net related as Overall, international us well the revenue $X.X share change to by reminder, we compared serve subsidiaries, in agreement. same create primarily Roche in markets The continues securities. and our from expenses value net of maintain same and uncertainty

back Now Brian. me hand let the call to

Great, thanks, Jill.

to said as chemotherapy believe will beyond I areas, revolution findings differentiated biggest of potential that presumably to approach of pillars extend the whether and the replace surgery investors is last including cells be for of the and improved Accelerator function of strive achieve OpRegen. lineage independently world. we cell journey and retinal end.A reproduce that revolutionized alongside to at restore other piece oncology our with in Cell one apply Cell therapy one week, has into for stands the cell that As a questions conference the And key able we'll therapy oncology and of and help therapy therapy. cancer therapy and will Roche ophthalmology to structure continue

ready So we we'll working will everything to in that, support attention our closely manufacturing conduct production development with help can activities, to be efforts ongoing With transfer the analyst are their any questions. which commercialization them we study while doing support appreciate are their to which I to process pursued. and to take the also operator, U.S., today. further facility your

Thank you.

Your Pantginis first of question Joseph Wainwright. from line comes H.C. from the

Your live. line is

taking Hey good question. the everybody, afternoon, thanks for

quicker? So IIA the especially way. but of Brian, do to to the impacted anyway, bring and totality Phase how principal I'm it on have study imaging and the or to you sites going being comments OpRegen this investigators I'm recent ask data say, able on have the Based the ask conduct may of going about sort data, positively of anecdotal any additional this the

reference said I the a They anecdotal I that first, first My and made I references. know, felt brave. a previous What any dozen people in courageous on this, Thank say, will who this that won't where you have so I statement underwent question, the incredibly let's like world. or were the don't a is were specific for response call the Joe. therapy I

and is the Lineage the could kind that do some through of that, I possible, control the the factor emphasize I part presenting patient Genentech. previously. that's been are entirely II have my of same site they to of data, we want channels.But easier Phase outcomes, of own which the statement clinical by fear has Genentech channels able conduct its in previously a think some conversation their over just could not be presumption that that because to the between investigative wonderful Roche presented the that point be the Now that or through the is mitigated been and which can which Roche ongoing outcomes have the under and of specific we to described show

in you we today, That's the separately the you And to into would the poster current say, would I describe able little asset go be whether Thanks see, interest to the how assets, others, think earlier ANPX might of stage totally regard a preclinical fair. a appreciate other down you comments earlier with or that. as and made lot. just do when if some fashion pipeline, part some VAC or platform? a it's data then that you

and mind what some we turns to research in Thank for that's to initial you delivery, wait that data that sort of work think which ANPX. conference also that ago, if generated functional expression I for proof-of-concept described the we I important while a I model of want factors, with is necessary. identity question. because a My migration, did that setting preclinical even moment don't encouraging around would

right elusive the some in I date.So has point, point that the program largely sort effect true early-stage we, inflection as that animal is conduct to the to of conduct and for preclinical a intend functional indication different like established because think phase studies quality to forth. that model approaches described, through been we of I an do designing and ANPX inflection of we these with of are next take University months now, to the alliance already so we check development but Michigan,

considerable addressable loss So are the in been substantial activity quite the some not early-stage think for But because would as earlier, of as I what certainly, loss referenced for quite that event, XXXX I market one hearing well even a in would event. assets. has think be of XXXX that exciting hearing part BD I the be a which

VAC And platform interest?

of to part that cell, suited the And a much partial of some, that biotech activity rationalization program, an is business to Yes, because then presented the product development through antigens VAC that.So as try is team could in which to see the mini of be dendritic development due develop environment. and more through also for is on rather let's program, partnership than continuing impossible nature again, internal than exhaust current think project using the clinical different be that could VAC different i.e., we hand. profiles say, rather that with one could we platform, of a to all well very to the contemplate own capital our more it the

question line Robert comes next Your from W. the line Baird, of from Jack Allen live. your is

Abby Hi, Jack. for this is on

as surrounding this? the On relates to it be neurological you the indications of additional going cells we're what what development provide color Eterna might for sorts you and some and to at neurology in of you updates drove indication, hyper-immune to be hoping partnership able might

Abby, question. for that you, Thank

I cell That don't couldn't that out line not we're line having to spinal in the approach in a that cell can in of sense.I might more in not position opportunities be hypo-immune down in anything makes evocative. us, hypo-immune indications what a think a I hypo-immune to transplant the than some a are of say comfortable utilized greater from company nonhuman at data, some a are to And cord. diabetes. potential is at trying a of the that think in the indications road coming in line offers we where a for but is which think, or good obviously lot mind it similar NHP data point this to I people I is there advantages for to that have that what line. type necessarily that say eye be say than of is concern quite immune-privileged, point, still is rejection think places generate have seen primate X

of is OpRegen, and case rejection. That's OpRegen, it have exposure the as the of addressed never that part will a we've a investments the of and this the note lines development So hypo-immune to outcomes thinking And such say this it's not nonzero biology, that from stage utilizing here find this a other our that possibility, more get a and that in of staged with is specifically But think they the itself place Phase of doing that is which only strategic way, very this with undisclosed extraordinary of reveal had complex. rejection. is field our these back on line difficult development, also harbor a to purpose cell program is opportunities, RPE.I early-stage to risks clinical have non-hypoimmune line can expertise the all to you setting where with our relying later because single more the strategy go and of about larger of it very we're II we probably might way years in edit specific via what than is a an a which, we and should to alliance easily I as and includes technology even Eterna where has will eye utilizing by the imagine yet person gene line have be but have I XXX approximately process indication. approach using

was And type diabetes, in wondering relates it your Parkinson's. on if follow-up, of I the concept as thank about Wonderful, comment thoughts a you. kind their initial could X you of mentioned to as you [indiscernible] then program proof

I love it.

I strategy. I in must expert think I've that type it helps restore validate a what an by I'm to not encouraged diabetes. X that I'm and acknowledge replace seen.

lot common our neurologically for and how our Our and know, a exactly and principles work which is is it underlie why mechanistic more expand affordable their oriented, of we share are that gets scope company, of looking as much but platform the features, that the I work think deployed. do to you ways

Kluska from the is live. comes of Kristen line Your line from next question Fitzgerald, Cantor your

of or light to to you seeing over new enrollment any it of few trends Wanted in the to on we've not seen comment you're OpRegen in as months. general, some ask advancements specifically asking last the aware if relates

issues one options that available some for now. these excited hand, on be those to safety So there of try are on have hand, may other that given therapies the the perhaps But looking we're other up? come then

little I along that AMD for thinking if you first more you ophthalmology that. and therapies, is mind about began to clinical wet My a could is specific but example, to came expand when people COVID skipping appointments, mind OpRegen? on ask in something or what Kristen, on trials have

in the therapies geographic meaning approved now. that general, space like are there Just atrophy

here, hand, thoughts getting that be therapy trial, the may be an interested were to one in in add patients on of but second approved have patients on those arise? play might light clinical in that having So a interested that not devil's safety maybe issues

with adverse the there and risk reason real to late questions, focus clinical just to that on the field patient, of of the don't I a put the collecting rely I'm the worth My just like some attributable other and benefits concerns profile of because think or my the the on. risks I of approved not AE to the fact safety one finer get has for But association point the that rate GA, between I much but rare benefit some is it, that us. not unavoidable are of anti-complement the agents vasculitis justify personal and issues also believe I asset points that of benefit risk.So you. commercials to about whether clinical the what monitor of safety very the even relationship all AEs. that and that see to I the all you is sit taking become data because of around the are experience and And events. the there Thank can any

in architecture great or that to as the rather and of the desired current slower think visual point contrasted of the not lengths we are OpRegen improvement product losses with product progression is OpRegen disease. going profile I of than retinal slowing to the gains, the insofar to profile

their talking about others different to So take to beyond are adverse great living. vision outcomes a the go so who that feed are individual people is anti-complement, of because wildly on are to great choice.There would we and all down risks clinical naturally that daily these ultimately lengths that of feel are are and differently. reach to invite critical tolerability events, willing quite level There

But you, population. increasingly vegetables. can't with anti-complement there's the I because that your the that were I do leafy for they approval think therapies perspective green past, So whereas respect a population thanks patient unanimous to the the and I anything don't patient to smoking stop do is educated, think in of told, eat getting

they on and I are these that they opportunity these and trade-offs think commercial are for overall condition compelling. landscape experts risks, Now the because clinical benefits think are OpRegen I competitive their the understanding very favorable becoming the is and

better that follow-up compared procedure single a to that basis of profile with hope I'm the is to on think that and my will to a safety anti-complement. question. also what ultimately are compliance daily seeing respect helpful we with compelling provide a OpRegen I view of almost provide ratio and hopeful is I very

and together No, then your put of thoughts your particular, around so the questions, cord thanks know number it latest of specific much. your peers heads to share so I these with injury, in the remind much. are or a And Thanks market lot space, about what opportunity really is. you work can think you've us a spinal in done for

at be. some think of $X information. believe, of cord can is point spinal to that Thank be got definitive I the would overall therapy an say a that $X upwards market, nor you population, it $XX question, what we have what neither candidate a for patient be its billion. example, we point to sales, peak What idea as this we asset company would prices billion, difficult billion, for product on-label Because the billion, reference to Kristen. would referenced $X are Globally,

I what think think came X.I XXX be in around how kind year provided about some out many I treating, Elon pricing company that their recently specific could think they somewhere Musk be Neuralink million. patients believe, of they they and USD projections they could which is very think the

So there are some data points out there.

we us, refined and haven't value-based course, it internal pricing. by For early will it is driven, be analysis our of it still simply beyond because

clinical a need. that real electrical the as it's starting pricing some any is more emerge such with in therapeutic, So external there's a comfortable approaches interface study measuring it tremendous a so our we physical a feel worth, that really or connection that gets we of lot programs of a approved.So important of as in stimulation of can are out of the well. being different to and justify There work lot to is investment approach that because developed, interesting the is unmet brain as patients competing high things don't quite are a of could are is to so Certainly, the we don't and including mechanistic there. are metric of to is which approaches that ensure paucity speak, value that use, space. we approaches know we There future comfortably but design worth tracking actually what strong potentially the have part work the with that some other to

keep short that can't we just represent that approaches it an in exciting comfortable but merits can other investment area it does sorry, feel I'm a with that, give So again, because you I development. continued and are number, it cooperate

the of line Your Securities., question Mamtani final from your B. Riley live. from Mayank line comes is

then of mentioned for for here at couple Mayank. cover in there financing predefined next Eterna, guys Madison to you guys, are are milestones and regards said questions you Hey you A I year. me. some that believe looking One,

could And are just threshold that's made, I of that model status of mention the if used you that? transfer need kind is, if creating ongoing. But correctly. trigger if functional kind or kind kind you literature? is know arose progress what there what then could widely that say, model the then the from the the so, if mention of if And hit? you have model you in the us the could I'm still tell So of wondering to if guys of activities secondly, And ANPX wondering manufacturing, that this versus quarter? heard it's created is lastly, last a you a of I

be you, Thank Medicine. would Regenerative to the eligible program in spinal state would we cost that particular, California sure programs good for not that for there With we financing, great to hope is of that And Institute I'm I of Yes. California. a the suggest that Madison. fantastic in our for program those you match And we're and fortunate OPCX tracked respect available a here hopefully, that questions I the better and are that believe cord receive capital correctly. to support. is than clinical financial

support the is are in the CIRM, I'm and that looking performance like we to to in wouldn't as generating to and the metrics, no in there be program be get we'll past, has which triggers, So and Eterna which line. support received hopeful I future.With able eligible reason have really the in I of agreement that respect Eterna accomplish certain is one we know

are we of some certain and that we has deliverable deliverable to trigger does, would amount may to experts do want and me here.Your more continue. allowed there's stay if and supporting investment fail, tech want for have that continue finally continue, he actually, they that success. have outsourced work, And not Culley, almost a to criteria. gene-editing So little around if funding a going let meet If it elective work because looking precedent. you to and not making capabilities transfer, and be we their would on Hogge, But can that like the model are be bring work a that are payments we're to they But and third not those then would although ANPX an in we and continue, we model, we elected of well some certain question we whether talk to to a in as produce are some compelled previously Dr. [indiscernible]. about

Hey Madison.

we're the a group and models number in working of are There of the number well-known other So so a assessments. and outcome Michigan groups. with

intention develop utilize something but is not to the as novo, so And de to that is already precedent.

that. we're here. about for on the tech groups figure to, alluded Brian not point, out transfer can wheel with we're is And re-inviting all to so as at we those working the And say. this the But target that's best models

There are That this time. today. our concludes further no questions for at meeting

disconnect now from the conference. may You

Thank you, Jordan, and bye, everyone.