Stock News Recap: Lineage Cell Therapeutics, Inc. (NYSE: LCTX)

On 12 May 2020, Lineage Cell Therapeutics, Inc. (NYSE: LCTX) stock observed trading -49.10% off 52-week high price. On the other end, the stock has been noted 59.21% away from low price over the last 52-weeks. The stock disclosed a move of 5.10% away from 50 day moving average and -7.30% away from 200 day moving average. Moving closer, we can see that shares have been trading 4.48% off 20-day moving average.

Lineage Cell Therapeutics, Inc recently stated financial and operating results for the fourth quarter and full year ended December 31, 2019. Lineage management will host a conference call and webcast recently at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time to discuss its fourth quarter and full year 2019 financial and operating results and to provide a business update.

Fourth Quarter Operating Results

Revenues: Lineage’s revenue is generated primarily from royalties, licensing fees, research grants and the sale of research products. Total revenues for the three months ended December 31, 2019 were $1.2M, a raise of $0.4M as contrast to $0.8M for the same period in 2018. The increase was primarily related to a $0.7M increase in royalties and licensing fees, offset by a $0.2M decrease in grant revenue and $0.1M decrease in the sale of research products.

Operating Expenses: Operating expenses are comprised of research and development (R&D) expenses and general and administrative (G&A) expenses. Total operating expenses for the three months ended December 31, 2019 were $8.0M, a decrease of $2.8M as contrast to $10.8M for the same period in 2018.

R&D Expenses: R&D expenses for the three months ended December 31, 2019 were $3.5M, a decrease of $0.3M as contrast to $3.8M for the same period in 2018. The decrease was primarily related to decreases of $0.7M in Renevia and HyStem expenses and a decrease of $0.2M in OpRegen expenses, offset by a raise of $0.6M in OPC1 and VAC2 expenses (these programs were purchased in the Asterias merger).

G&A Expenses: G&A expenses for the three months ended December 31, 2019 were $4.5M, a decrease of $2.5M as contrast to $7.0M for the same period in 2018. The decrease was primarily attributable to a $1.8M decrease in salaries, benefits and severance costs primarily related to terminated personnel, a $0.5M reduction in severance, legal, accounting and other expenses related to the Asterias Merger, a $0.3M reduction in accounting and consulting expenses and a $0.2M reduction in travel expenses, offset by a $0.2M increase in rent expense, which is primarily related to the implementation of ASC 842 Leases in 2019.

Loss from Operations: Loss from operations for the three months ended December 31, 2019 was $6.9M, a decrease of $3.2M as contrast to $10.1M for the same period in 2018.

Other Income/(Expenses), Net: Other income/(expenses), net for the three months ended December 31, 2019 reflected other income, net of $1.5M, contrast to other expense, net of ($35.2)M for the same period in 2018. The variance was primarily related to changes in the value of equity method investments and marketable equity securities for the applicable periods.

Net loss attributable to Lineage: The net loss attributable to Lineage for the three months ended December 31, 2019 was $4.5M, or $0.03 per share (basic and diluted), contrast to a net loss attributable to Lineage of $45.0M, or $0.35 per share (basic and diluted), for the same period in 2018.

Full Year Operating Results

Note regarding AgeX: On August 30, 2018, Lineage deconsolidated AgeX from its consolidated financial statements Because of the sale by Lineage of 14,400,000 shares of AgeX ordinary stock to Juvenescence and the related decrease of Lineage’s ownership position in AgeX. Accordingly, Lineage ceased recognizing revenue and expenses related to AgeX and its programs on such date.

Revenues: Lineage’s revenue is generated primarily from royalties, licensing fees, research grants and the sale of research products. Total revenues for the year ended December 31, 2019 were $3.5M, a decrease of $1.5M as contrast to $5.0M for the same period in 2018. The decrease was primarily related to a $1.5M decrease in grant revenue and a $0.7M decrease in subscription and advertising revenues, partially offset by a $0.8M increase in royalties from product sales and license fees.

Operating Expenses: Operating expenses are comprised of R&D expenses and G&A expenses. Total operating expenses for the year ended December 31, 2019 were $42.0M, a decrease of $4.5M as contrast to $46.5M for the same period in 2018.

R&D Expenses: R&D expenses for the year ended December 31, 2019 were $17.9M, a decrease of $3.9M as contrast to $21.8M for the same period in 2018. The decrease was primarily related to a decrease of $4.6M related to the AgeX deconsolidation and the absence of AgeX R&D expenses incurred after August 30, 2018, a decrease of $3.8M in Renevia and HyStem expenses and a decrease of $0.2M in OpRegen expenses, offset by a raise of $4.8M in OPC1 and VAC2 expenses (these programs were purchased in the Asterias merger).

The USA based company Lineage Cell Therapeutics, Inc. moved with change of -3.42% to $0.85 with the total traded volume of 843583 shares in recent session versus to an average volume of 708.37K. LCTX’s shares are at -46.20% for the quarter and driving a -25.44% return over the course of the past year and is now at -4.49% since this point in 2018.  Right now the stock beta is 2.15. The average volatility for the week and month was at 10.70% and 9.99% respectively. There are 155.87M shares outstanding and 140.87M shares are floated in market.

 

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