Lineage Cell Therapeutics Reports 6% Revenue Growth to $9.5 Million in 2024

Lineage Cell Therapeutics, Inc. reported total revenues of $9.5 million for the year ended December 31, 2024, a 6% increase compared to $8.9 million in 2023. This increase was primarily driven by a 7% rise in collaboration revenues to $8.1 million, stemming from the Roche Agreement. Royalties, license, and other revenues decreased slightly by 1% to $1.4 million. The company's operating expenses totaled $31 million in 2024, an 8% decrease from $33.7 million in 2023. This reduction was primarily due to a 21% decrease in research and development expenses, partially offset by a 5% increase in general and administrative expenses.

Significant changes in research and development expenses reflect delays in obtaining FDA clearance for the DOSED clinical study for OPC1, resulting in a $3.2 million decrease. Conversely, OpRegen program expenses increased by $0.6 million. The company also reported a net loss of $18.6 million for 2024, compared to a net loss of $21.5 million in 2023. Other income and expenses, net, increased significantly to $2.9 million in 2024, primarily due to a $2.1 million increase in the change in fair value of warrant liability and a $0.9 million increase in interest income, partially offset by a $0.3 million foreign currency transaction loss.

During 2024, Lineage entered into a Services Agreement with Genentech to support the OpRegen program, receiving payments in exchange for supplemental services. The company also initiated the DOSED clinical study for OPC1 in the first quarter of 2025, following FDA approval. Two separate financings totaling $44 million in gross proceeds were completed, with the potential for an additional $36 million upon full exercise of OpRegen clinical milestone-linked warrants. The company's employee count was 77 as of December 31, 2024, with 24 employed by Lineage and 53 by its subsidiary, CCN, located in Jerusalem, Israel.

The company's operations in Israel were temporarily impacted by the October 2023 regional conflict, but no material adverse effects were reported as of the filing date. Lineage's financial resources are projected to fund operations for at least twelve months from the filing date, but additional capital will be required to complete product development and seek regulatory approvals. Potential sources of funding include equity offerings, debt financings, government grants, and strategic collaborations. The company does not currently have established marketing, sales, or distribution capabilities and will need to develop these or collaborate with third parties for commercialization of any approved product candidates. The company's 10-K filing also details various risks related to its business operations, clinical development, intellectual property, and regulatory compliance.