Lineage Cell Therapeutics, Inc. (AMEX:LCTX) Q4 2022 Earnings Call Transcript

Kristen Kluska: Hi, good afternoon. Thanks for taking my questions. So we’ve talked a lot about how a GA approval in general could help to better educate the market, but perhaps I’ll ask you the question from a different direction. How do you think that the emergence of these commercial complement inhibitors can help frame eligible patients by the time OpRegen potentially reaches the market? So I know you’ve shown that if patients are perhaps too far along towards legal blind status, they may not be eligible. So do you think that more patients, should they be compliant on these complement inhibitors, could become eligible given there’s at least some slowing of the progression?

Brian Culley: I love it. We have a market leader that is going to condition a market to accept a new therapy in an environment where there are no approved therapies today. And I think there are a couple places where that can be beneficial. There are technologies out there that are helping people to identify this disease earlier. So I think we’re going to see an increase in the prevalence through identification of patients. And I think most companies with these therapies in development are thinking that earlier patients are, are sort of more suited for therapy. And I also think that the aging population is going to increase the incidence of the condition. So if you, if you imagine that when my dad was first diagnosed with dry AMD, that he would’ve been told, we’re sorry, there’s nothing we can do for you, Mr. Culley.

But now he would be brought in, he would have a specific caregiver, presumably he would be on therapy, and now he’s a little bit of a of a captured population. So if you come along with the second, third, or fourth treatment in, in a, a disease setting you benefit from the precedent and the awareness of an educated patient population. So I would not feel so positively about it if we had a me too therapy, but because our therapy is so wildly different and, and I then I’m hopeful we’ll continue to look so different in terms of its product profile. I think that it’s actually a big positive for us.

Kristen Kluska: Okay. Thank you. And given the, the data here and of course the validation from Genentech Roche, I’m, I’m wondering how you’re thinking about this pathway with some of your earlier candidates as you start to do some work here. So do you like potentially establishing some proof of concept data in-house before potentially seeking partnerships similar to what you saw here? And then can you detail for us some of the preclinical work that you’re intending to conduct in your term?

Brian Culley: So with respect to the strategic component of your question, which has to do with, with partnering, I think the answer is that it, it very much depends on the cost of development that you’re facing. Your probability of success, the macroeconomic business environment you’re in, your cost of capital. All of these factors are sort of fun decisions that companies with multiple assets get to make. So we don’t have a plan to either partner or not partner any of our assets. We look at them as assets that have optionality and flexibility. We just try and make them as valuable as possible so that if we do elect to enter into a partnership that we can find that partnership to be financially rewarding and strategically valuable.