Lineage Cell Therapeutics, Inc.

What they do

Lineage develops cell replacement therapies intended to replace or support cells lost to disease or trauma, using its proprietary AlloSCOPE (Allogeneic, Scalable, Consistent, Off-the-shelf, Pluripotent Cell Engineering) manufacturing platform. It derives all product candidates from a single cultured pluripotent cell line and does not administer stem cells to patients, instead delivering differentiated replacement cells. Its most advanced program is OpRegen (RG6501), an allogeneic retinal pigmented epithelial cell therapy in Phase 2a for geographic atrophy secondary to dry AMD, developed under a worldwide collaboration with Roche and Genentech.

Revenue drivers

• Roche collaboration (OpRegen) — Collaboration revenue is recognized over time using an input method of costs incurred over total estimated costs to complete the first performance obligation; this is the dominant revenue line, with $943 thousand in Q2 2026 and $2.5 million in the first half of 2026.
• WDI research collaboration — A research collaboration agreement with WDI contributed $0.3 million more in Q2 2026 versus prior year and $0.9 million more in the first half of 2026, partially offsetting the Roche decline.
• Royalties, license and other revenues — Royalties from sublicensee product sales and license/other items; this line produced $126 thousand in Q2 2026 and $276 thousand in the first half of 2026, down 46% and 41% respectively year over year.

Recent performance

Total revenues for the three months ended June 30, 2026 were $1.1 million, down 61% from $2.8 million in the prior-year quarter, driven by a $1.6 million decrease in collaboration revenue and a $0.1 million decrease in royalty revenue. For the six months ended June 30, 2026, total revenues were $2.8 million, down 35% from $4.3 million, with collaboration revenue down $1.3 million and royalties/license/other revenue down $0.2 million. The collaboration decline included $1.1 million attributable to the Roche Agreement in the quarter and $0.7 million of prior-year deferred revenue recognized on termination of the Immunomic Therapeutics license in Q2 2025, partly offset by WDI. Recent quarterly revenue trended from $6.6 million in Q4 2025 to $1.7 million in Q1 2026 and $1.1 million in Q2 2026. Full-year 2025 revenue was $14.6 million with a net loss of $63.5 million, and operating cash flow was negative $18.9 million.

Strategy

Lineage aims to leverage its AlloSCOPE platform to build a pipeline of related but discrete cell-based assets, advancing some internally and partnering others when it believes that enhances probability of success and value. It continues to support Roche and Genentech's clinical development of OpRegen under the collaboration and a separate May 2024 services agreement covering long-term follow-up, the Phase 2a GAlette study, and technical training for commercial manufacturing. The company announced progress with COR1, a wholly-owned preclinical corneal endothelial cell therapy program, reporting bioreactor-based precursor expansion and differentiation using AlloSCOPE 5D technology within nine months of starting internal lab work. It established a scientific advisory board with cell therapy executive Joachim Fruebis, PhD as founding member, and states cash, cash equivalents, and marketable securities as of June 30, 2026 are expected to support planned operations into Q3 2028.

Risks

• Dependence on Roche collaboration — Lineage's lead program OpRegen is licensed to Roche, and if Roche is not successful or terminates the collaboration, Lineage would lose a significant source of potential revenue and further development of OpRegen could be delayed or terminated.
• Clinical and regulatory uncertainty — OpRegen remains in Phase 2a development and the company has no approved products, so milestones and royalties depend on clinical success that may not be achieved.
• Revenue concentration and volatility — Total revenues fell 61% in Q2 2026 to $1.1 million, and the company states collaboration revenues may fluctuate period to period based on changes in estimated costs to support performance obligations.
• Cash burn and capital needs — Lineage reported operating cash flow of negative $18.9 million in 2025 and a $63.5 million net loss in 2025, so continued funding depends on its $37.4 million cash balance at June 30, 2026 and future access to capital.

Outlook

Management expects its cash, cash equivalents, and marketable securities as of June 30, 2026 to support planned operations into Q3 2028. It plans to continue supporting Roche and Genentech's OpRegen development, including the Phase 2a GAlette study now open at 17 clinical sites in the U.S. and Israel. It also intends to advance wholly-owned programs such as COR1, emphasizing early clinical data generation to evaluate clinical potential earlier and optimize capital allocation.