Biotech Lotto Ticket Update

Looks like we have a winner.

Follow-Up: Our Biotech Lotto Ticket’s Set To Cash

On Friday, paid subscribers got the heads-up to snag July $1 calls on Lineage Cell Therapeutics (LCTX 0.00%↑) ahead of its 36-month data release for OpRegen®, an embryonic-stem-cell therapy for geographic atrophy (GA).

Late Saturday night, Lineage quietly uploaded the slide deck from Dr. Christopher Riemann’s podium talk at Clinical Trials at the Summit in Las Vegas earlier in the day. This was the first public look at the 36-month data from the Phase 1/2a trial of its retinal-pigment-epithelium (RPE) cell therapy for geographic atrophy (GA—a late, “dry” form of age-related macular degeneration).

The numbers are excellent.

What the data showed

• Durable vision benefit – Treated eyes gained +2 letters on average, while their untreated fellow eyes lost –14.5 letters over the same 36-month span.

• Lesion-growth slowdown – Mean GA expansion fell by ≈ 65 % in treated eyes (0.79 mm²/yr vs 2.27 mm²/yr in controls).

• Clean safety – No late graft rejection; only one mild inflammatory event (Grade 1) reported after Year 1.

• Structural proof – OCT (Optical-coherence-tomography) imaging still shows a healthy RPE-like layer where the graft was placed, with photoreceptors intact above it.

Put simply, a one-time cell transplant preserved sight and slowed disease better than any approved GA drug—without the injection burden.

What to Expect When the Market Opens

We obviously don’t have Monday pre-market prints yet, but catalysts of this quality on micro-cap floats (<$200 M) can gap up 50–100 % at the open. If that happens:

• The July $1 calls we bought for about $0.20 should open at several-times that price—most of their value will be intrinsic once the stock is solidly above $1.

• Implied volatility (IV) will jump at first, then likely fade as traders lock profits. The first hour is usually the sweet spot to sell a tranche.

Macro disclaimer: One wild card is the Mideast conflict, in the wake of the U.S. strikes on Iran on Saturday: should headlines turn sharply negative overnight (e.g., significant Iranian retaliations), broad risk-off flows could trim the opening gap or accelerate profit-taking.

My Plan

1. Sell half of the position into any opening spike on Monday to lock in profits.

2. Hold the balance to see if we get a follow through higher (on raised analyst price targets, etc.).

If You Missed Friday’s Entry

• Upside: a clean tape could still march to $2–$2.50 this week on analyst chatter or a Genentech milestone PR.

• Downside: profit-taking and IV crush can lop off a third of the pop quickly.

Consider waiting for the first hour’s range to form; nibble commons or cheap July $1.50 calls only if price holds above ~$1.60 on solid volume.

Takeaways

1. The catalyst hit: durable vision benefit, slowed GA progression, and a benign safety curve.

2. The move isn’t priced in yet; first reaction comes Monday.

3. Trade the surge, but respect how fast biotech gains can retrace.

Full deck (11 pages) is here if you’d like to review before the bell.

See you Monday morning.