Lineage Cell Therapeutics Secures Gene‑Edited Hypoimmune Stem Cell Line from Factor Bioscience, Expanding Allogeneic Platform

LCTX
January 06, 2026

Lineage Cell Therapeutics announced receipt of a novel gene‑edited hypoimmune induced pluripotent stem cell line from Factor Bioscience, a move that adds a new platform candidate to its AlloSCOPE™ manufacturing pipeline. The line incorporates edits that reduce immunogenicity and includes a disease‑specific modification that could differentiate it from other cell therapies.

The delivery triggers a success payment from Lineage to Factor and makes Lineage eligible for an additional payment if it later secures an exclusive license to use the line. Lineage plans to evaluate the cell line’s compatibility with its proprietary AlloSCOPE™ platform before deciding whether to pursue a license, a step that could unlock off‑the‑shelf therapies for several indications.

The acquisition broadens Lineage’s pipeline into geographic atrophy, spinal cord injury, and hearing loss, aligning with the company’s strategy to leverage external capital while retaining manufacturing control. The hypoimmune nature of the line is critical for developing allogeneic products that minimize immune rejection, a key hurdle in cell therapy.

Lineage’s recent earnings miss for Q3 2025—an EPS of –$0.13 versus a consensus of –$0.02—highlights ongoing profitability challenges despite revenue growth to $3.68 million. The new cell line is part of the company’s R&D1 program, which aims to accelerate the development of high‑value, off‑the‑shelf candidates and could help shift the company’s financial trajectory over the next few years.

CEO Brian M. Culley said the partnership “supports our plan to create novel and superior product candidates by combining our manufacturing and process development capabilities with cutting‑edge cell engineering and editing technologies.” Factor’s CEO Matt Angel added that the collaboration “enables treatment of diseases in ways not previously possible,” underscoring the strategic importance of the deal for both companies.

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