Lineage Cell: Boral Capital Raises PT to $2 from $1, Maintains Buy Rating

Lineage Cell: Boral Capital Raises PT to $2 from $1, Maintains Buy Rating

Lineage Cell Therapeutics, Inc. (LCTX) has seen a significant shift in its price target, with Boral Capital raising its PT to $2 from $1 while maintaining a buy rating. This move follows the company's recent announcement of a research collaboration with William Demant Invest A/S (WDI) [1]. The collaboration aims to advance the preclinical development of Lineage's auditory neuronal cell transplant, ReSonance (ANP1), for the treatment of hearing loss.

The collaboration, which spans a three-year term, will involve up to $12 million in research costs contributed by WDI. The funding will support preclinical development activities, including cell manufacturing, proof-of-concept studies, and regulatory strategy. This partnership is a strategic step for Lineage, as it combines the expertise of Eriksholm Research Centre, part of Oticon A/S, with Lineage's cell transplant technology.

Lineage's CEO, Brian Culley, highlighted the significance of this collaboration, stating, "ReSonance is our first internally-developed cell transplant program and highlights the efficiency and breadth of our technology platform. This partnership will allow us to integrate the hearing loss research expertise of Eriksholm Research Centre with the manufacturing and cell transplant expertise of the Lineage team to explore the potential of a differentiated cell transplant, and position this therapy for initial clinical development."

The World Health Organization (WHO) estimates that nearly 2.5 billion people will experience some degree of hearing loss by 2025. Hearing loss can be particularly challenging in severe-to-profound cases, where auditory nerve cells are damaged or lost, leading to auditory neuropathy and significant hearing impairment. Cell-based therapy, such as ReSonance, aims to replace lost or damaged auditory nerve cells, potentially restoring hearing and enhancing the effectiveness of cochlear implants.

Boral Capital's revised PT reflects the potential of Lineage's pipeline, which includes several cell therapy programs in various stages of development. The company's neuroscience-focused pipeline includes OpRegen®, OPC1, ReSonance, PNC1, and RND1. While the PT increase suggests optimism about Lineage's prospects, it is important to note that forward-looking statements involve risks and uncertainties, including the possibility that development activities may not progress as expected.

In conclusion, Lineage Cell Therapeutics' collaboration with WDI and the subsequent PT increase by Boral Capital indicate a positive outlook for the company's auditory neuronal cell transplant program. However, investors should remain cautious and monitor the company's progress in the coming years.

References:
[1] https://www.stocktitan.net/news/LCTX/lineage-announces-research-collaboration-with-william-demant-invest-q7ti7kc22eeb.html