EXCLUSIVE: Lineage Cell Inks Exclusive Agreement For Novel Cell-Based Therapies With Potential In Neurology

Lineage Cell Therapeutics Inc LCTX has entered into an exclusive option and license agreement with Eterna Therapeutics Inc ERNA for beta 2 microglobulin (B2M)-deficient induced pluripotent stem cell (iPSC) lines, which Lineage will evaluate for development into differentiated cell transplant therapies. The financial terms were not disclosed.

What Happened: The new cell lines to be developed by Eterna will support the potential creation of additional product candidates at Lineage, specifically for central nervous system disorders and other neurology indications. 

Eterna is the exclusive licensee of the key intellectual property underlying this collaboration from its discovery partner Factor Bioscience. 

Eterna plans to conduct certain gene-editing activities and provide materials to Lineage for evaluation. 

The agreement provides Lineage an option to obtain an exclusive license to utilize and sublicense the gene-edited cell lines.

Also Read: EXCLUSIVE: Lineage Cell Establishes New R&D Facility In US, Expands Israel-Based Facility.

Why It Matters: “The initial cell lines we envision bringing into the clinic through this agreement will utilize proprietary mRNA-based gene-editing technology developed by Eterna’s CEO, Dr. Matt Angel,” said Brian M. Culley, Lineage’s CEO. 

A feature of the starting cell line is the targeted deletion of the B2M gene, designed to reduce the immunogenicity of product candidates derived from the lines by inhibiting rejection by CD8+ T cells. 

Lineage expects this attribute will expand the edited cell lines’ overall utility.

Additional planned gene edits may further differentiate the cell line from others currently in use by competitors.

Price Action: LCTX shares closed at $1.26 on Tuesday.