The company with zero revenue that is worth $31 billion
A biotech stock focused on herbal medicine has surged by more than 64,000 per cent so far this year, although the company has made zero revenue, much less turned a profit.
The unbelievable rally has transformed Regencell Bioscience Holdings, a penny stock as recently as April, to one worth more than $US20 billion ($30.7 billion) in market value. A year ago, the company had a market capitalisation of $US53 million. This is despite having a net loss of $US4.4 million for its fiscal year that ended June 2024, a 28 per cent decrease from the previous year.
Regencell Bioscience this month said its board approved a 38-for-1 stock split. When the split took effect, shares rose as much as 434 per cent – their biggest one-day jump ever – to a record high, triggering more than 10 volatility halts.
Shares of the company have been on a bizarre 640-fold tear in 2025, with little to no news released. The Hong Kong-based company, which debuted on the Nasdaq Capital Market in 2021, is in the research and development stage and has not generated any revenue since inception, according to its most-recent annual filing with the US Securities and Exchange Commission.
A representative for Regencell didn't immediately respond to a Bloomberg request for comment.
Incorporated in the Cayman Islands, the company aims to treat neurological conditions such as ADHD and autism spectrum disorder through traditional herb-based medicines, according to its website. Its traditional Chinese medicine (TCM) formula, which forms the basis of its product candidates, 'contains only natural ingredients without any synthetic components'.
'We have not generated revenue from any TCM formulae candidates or applied for any regulatory approvals, nor have distribution capabilities or experience or any granted patents or pending patent applications and may never be profitable,' the company said in an October filing.
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