Lineage Cell Therapeutics, Inc. (LCTX), a clinical-stage biotechnology company specializing to develop allogeneic cell therapies for degenerative retinal diseases, neurological conditions associated with demyelination, and assisting the body in detecting and fighting cancer, reported financial and operating report for the first quarter of 2021.
At last check in premarket trading, the share price of Lineage Cell Therapeutics Inc. (LCTX) had a slight increase of 0.44%. Shares of the company fluctuated between $2.21 and $2.39 throughout the day. Over the past three months, the stock has lost -24.67%, while over the past six months, it has added 60.28%. Further, the company has a current market of $350.80 million with outstanding shares that stood at 158.72 million.
First Quarter Financial Report
Lineage Cell Therapeutic’s revenue was produced mainly from research grants, royalties, and licensing fees. Accumulated revenue generated for the three months completed on March 31, 2021, was almost $0.4 million, representing a decline of $0.1 million from $0.5 million for the same quarter in the previous year. The decline was driven by an approximately $0.2 million reduction in grant income, which was primarily due to the completion of SBIR grant-related activities, driven by a $0.1 million increment in royalty-related revenues.
Operating expenses consisted of research and development (R&D) expenses and general and administrative (G&A) expenses. Total operating expenses for the quarter completed on March 31, 2021, was $7.3 million, depicting a decline of $0.6 million in comparison to $7.9 million for the same quarter the prior year.
R&D expenses for the first quarter of 2021 were $3.4 million, representing an increment of almost $0.1 million versus $3.3 million for the same quarter last year. The overall increment was primarily due to an increase of $0.5 million and $0.4 million in VAC and OPC1 program expenses, and a net decline of $0.8 million in OpRegen and various other ophthalmic application expenses, offset by variations in the timing of manufacturing activities.
Loss from operations in the first quarter of 2021 was almost $7.0 million, depicting a decline of $0.4 million in comparison to $7.4 million for the first quarter of the prior year.
The net loss accredited to Lineage for the first quarter of 2021 was $1.4 million, or $0.01 per share, versus a net loss accredited to Lineage of $8.4 million, or $0.06 per share, in the same quarter of the previous year.
Lineage Cell Therapeutics produced a better-than-expected financial report. Furthermore, an enhanced board of directors combined with Worldwide License Agreement Secured for a Cancer Immunotherapy may provide differentiation for the company and potentially increase investor expectation for LCTX.