H.C. Wainwright Reiterates Buy Rating on Lineage Cell Therapeutics Inc. (LCTX)

H.C. Wainwright analyst Joseph Pantginis reiterated a Buy rating and $9.00 price target on Lineage Cell Therapeutics Inc. (NYSE: LCTX)

The analyst commented, "News out global partner Roche for OpRegen remains the upcoming transformation catalyst for the shares; Roche has rapidly added sites to the GAlette study and we remind the key thesis that currently approved GA therapies from dry-AMD only slow the progression. Three year, long-term, OpRegen data have shown reversal of GA and improved visual acuity. Key technical advances have been made for pipeline assets providing Lineage with long-term pipeline fill and potential for multiple BD opportunities and non-dilutive funding... We reiterate our Buy rating and our price target of $9. Our valuation is based on our clinical net present value (NPV) model, which allows us to flex multiple assumptions affecting a drug's potential commercial profile. Our valuation is based on the OpRegen and OPC1 programs; 91% contribution and 9% contribution, respectively. Note that OpRegen is addressing dry AMD, which represents 80-90% of the AMD market. We believe potential upside exists as clinical data are delivered from multiple indications, overall pipeline development. Factors that could impede the stock from reaching our price target include failed or inconclusive clinical trials or inability of the company to secure adequate funding to progress its drugs through the development pathway. We also highlight the increased risk around regenerative medicine. The promise of regenerative medicine and stem cells has been around for quite some time with no clear clinical win (pivotal or commercial). Many consider the approach still very promising and many consider it to be an ongoing science experiment. To this end, the field has progressed much more slowly than expected though there have been many earlier stage clinical wins. We believe the overall risk profile of the space is higher than typical biotech drug development until a major clinical win is achieved."

For an analyst ratings summary and ratings history on Lineage Cell Therapeutics Inc. click here. For more ratings news on Lineage Cell Therapeutics Inc. click here.

Shares of Lineage Cell Therapeutics Inc. closed at $1.84 yesterday.

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