LCT Details
 
50% rise in half yearly operating loss: Living Cell Technologies Limited (ASX: LCT) is an Australasian biotechnology company developing and commercialising breakthrough treatments based on regenerative healing properties of naturally occurring cells. In its half-yearly report for the six months ended 31 December 2016, the group reported for 50% increase in consolidated operating loss after income tax to $2.1m (against 2015 loss of $1.4 m). This came at the back of two factors including groups 1 and 2 of the Phase IIb clinical trial of NTCELL® for Parkinson’s disease being treated at Auckland City Hospital and the cost of securing the supply and manufacture of NTCELL. On one hand, there was an increase in income from Callaghan Innovation Growth Grant owing to increased eligible R&D expenditure; on the other, the company’s share of joint venture losses exceeded its interest.The capital raising of $6.3m late last year led to an increase in cash and cash equivalents to $8.6m from the figure of $5.3m reported at the end of 30 June 2016. The group’s revenue also jumped up 52% over previous corresponding period.
 

Trial Progress_Declining UPDRS (Source: Company Reports)
 
Update due on trials: As per the trials update, the group expects that all four patients of the initial Phase I/IIa trial will be reaching the next common point of measurement (130 weeks post treatment) in August 2017, and the group would provide an update accordingly. Further, LCT is focussing on completing final group of six patients in the Phase IIb trial and progressing with plans for commercialisation in 2018. The group’s patent application on “TREATMENT OF CNS DISEASE WITH INDUCIBLE CHOROID PLEXUS CELLS” No. 15/154,709 has been published by the United States Patent and Trademark Office, however, a patent is yet to be granted.
 
Stock Performance: LCT stock has already moved up 174.5% in last one year (as at April 20, 2017) and is nearing its full value. LCT’s performance seems to be substantially based on completion and outcome of its Phase IIb clinical trial of NTCELL in Parkinson’s disease. Given the trading scenario in light of subdued financial performance and awaited outcomes of trials, we believe it might be a good time for investors holding the stock to take profits, as the same looks overvalued at the current price of $ 0.14


LCT Daily Chart (Source: Thomson Reuters)

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