Investors flock to Chinese herbal medicine stock with no revenues
Regencell Bioscience Holdings' NASDAQ stock price rallied with a 280% increase on Monday and another 25% on Tuesday after a recent 38-for-1 stock split took effect on Thursday. File Photo by Angelina Katsanis/UPI | License Photo
June 17 (UPI) -- Shares in Hong Kong-based Regencell Bioscience Holdings nearly quadrupled in value amid a 38-to-1 stock split despite the firm reporting no revenues.
The stock split triggered a 280% share price increase on Monday, CNBC reported, and continued a 58,000% increase in its price in 2025, with a closing cost of $78 per share on the NASDAQ trading platform on Tuesday.
The stock reached a high of $81.23 during morning trading and slumped slightly to $75.47 during Tuesday's after-hours trading.
The stock is rated as a "buy" on the TipRanks website after Regencell officials on June 2 announced the stock split to improve its liquidity and value for shareholders.
The stock split gave investors 37 shares for each share held on June 12. The shares began trading on a split-adjusted basis on Monday, according to Seeking Alpha.
The firm has no reported revenue but says it is developing a Chinese herbal treatment for childhood attention deficit hyperactivity disorder and autism.
The firm was established in 2014 and has been traded on NASDAQ under the RGC symbol since 202.
It had a market capitalization of $29.7 billion at the end of trading on Monday.
The market capitalization rose another 25% on Tuesday, with a total value of $36 billion.
The stock traded for pennies per share last year but now has a greater market value than highly recognized businesses, including Kraft Heinz, Lululemon and eBay, according to CNBC.
Part of the increased investor interest is due to Health and Human Services Secretary Robert Kennedy Jr. raising awareness of alternative medicines.
Regencell Chief Executive Officer Yat-Gai Au controls more than 86% of the company's outstanding shares, according to FactSet.
Little information is available about the potential effectiveness of the company's claims regarding its three traditional Chinese medicine formulas that are supposed to treat mild to severe forms of ADHD and autism with natural herbal medications in liquid form.
Company officials in October reported no generated revenue and no regulatory approvals for its three liquid medicines.
They reported net losses of $6.06 million in 2023 and $4.36 million in 2024.
A Regencell patient case study in late 2023 said 28 patients were treated over three months during a second trial, which showed improvements in ADHD and autism.
A dozen patients participated in a 2021 study to treat COVID-19, which indicated improvement in their symptoms.
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