Time may be running out for anti-aging biotech AgeX as funds dry up

Time may be running out for anti-aging biotech AgeX as funds dry up

AgeX Therapeutics, a preclinical biotech looking to turn back the clock on aging, may have to wind down, announcing “substantial doubt” about its ability to continue as money runs dry and debts mount.

The California biotech made $12,000 in revenue for the second quarter and recorded $1.6 million in operating expenses over the same period, according to financial results posted August 12.

During the first quarter, the biotech borrowed the final half million of credit available under a 2020 agreement with Juvenescence—a separate anti-aging biotech—and entered a new deal in which Juvenescence will provide $13.2 million in credit for a year. AgeX drew an initial $8.2 million of the line of credit and used $7.2 million to refinance the principal and the loan origination fees under a 2019 loan agreement with Juvenescence.

During the second quarter of this year, AgeX borrowed another $2 million. As of August 12, AgeX had borrowed $10.2 million total with $3 million left. The remaining line of credit is available until Feb. 14, 2023, with the outstanding principal balance due and payable February 14, 2024.

AgeX is now warning it won’t be able to meet future financial obligations based on projected cash flow in the upcoming 12 months. As of the end of June, AgeX had about $702,000 in cash and equivalents on hand.

Launched in 2017 as a subsidiary of BioTime—which has since changed its name to Lineage Cell Therapeutics—AgeX became entwined with Juvanescence in 2021 when that company paid Lineage $43.2 million for 14.4 million shares of AgeX stock.

AgeX currently has three preclinical candidates: a cell-based therapy called AGEX-VASC1 comprised of vascular endothelial progenitor cells to potentially treat cardiac ischemia; AGEX-iTR1547, a drug-based candidate for scarless wound repair; and AGEX-BAT1 for certain age-related metabolic disorders such as Type II diabetes.

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