Lineage Cell Therapeutics Q2 revenue falls but posts profit

Overview

• US cell therapy developer's Q2 revenue declined yr/yr due to lower collaboration revenue

• Q2 net income reached $1.5 mln, reversing a loss from the prior year period

• Operating expenses fell sharply, reflecting absence of prior year impairment charge

Outlook

• Lineage expects cash and equivalents to support operations into Q3 2028

• Company expects initial preclinical data from COR1 program in 2026

• Company continues to advance multiple clinical and preclinical cell therapy programs

Result Drivers

• COLLABORATION REVENUE DECLINE - Co said lower Q2 revenue was mainly due to reduced collaboration revenue recognized from deferred revenues under the Roche Agreement and the prior year termination of the VAC platform-related collaboration

• OPERATING EXPENSES DROP - Co attributed lower operating expenses to the absence of last year's $14.8 mln non-cash impairment expense related to the VAC platform

• WARRANT LIABILITY REMEASUREMENT - Co said net income was helped by a favorable quarterly fair value remeasurement of warrant liabilities driven by a decrease in share price

Company press release: ID:nBw53FYJfa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology medical research peer group is "buy"

• Wall Street's median 12-month price target for Lineage Cell Therapeutics Inc is $4.50, about 294.7% above its August 5 closing price of $1.14

Reuters Recommended Reads

• Aug 6 - Intellia Therapeutics Q2 collaboration revenue falls, net loss widens

• Aug 6 - Precision BioSciences Q2 net loss widens on warrant liability charge

• Aug 6 - Cartesian Therapeutics Q2 net income steady

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)