Herbal medicine stock Regencell Bioscience surges 64,000% despite zero revenue.

From Yahoo Finance: 2025-06-16 16:30:00

Regencell Bioscience Holdings Limited, a biotech stock focused on herbal medicine, has surged by over 46,000% in 2025 despite making zero revenue. The company’s market value has skyrocketed to nearly $30 billion, up from $53 million a year ago, with a net loss of $4.4 million for the fiscal year ending June 2024.

The company recently approved a 38-for-1 stock split, leading to a 283% jump in shares. Regencell, based in Hong Kong and listed on the Nasdaq, is in the research and development stage and has not generated any revenue since its inception, according to SEC filings.

Regencell aims to treat neurological disorders like ADHD and autism spectrum disorder using traditional herb-based medicines. Its Chinese medicine formula, with natural ingredients only, forms the basis of its product candidates. The company has not generated revenue from any TCM formulae or applied for regulatory approvals, indicating potential profitability challenges.

In addition to traditional herb-based medicines, Regencell has ventured into Covid-19 treatments. Preliminary data from a 2022 trial showed promise in reducing and eliminating Covid symptoms within six days. The results are yet to be peer-reviewed, but the company is exploring holistic approaches to therapy.

Regencell has primarily funded its operations through shareholder loans and proceeds from its initial public offering. The company raised $21.85 million in gross proceeds from its IPO, with an additional $2.85 million from the issue of over allotment shares and exercise of 325,000 shares.

Read more: Herbal Medicine Stock With No Sales Rallies 64,000%