Hong Kong’s Regencell Bioscience triples in newest surge for a speculative inventory

Regencell Bioscience Holdings, an early-stage, Hong Kong-based bioscience firm with no income, is the most recent speculative abroad inventory to draw an uncommon surge in buying and selling demand.

Shares of Regencell, which says it develops conventional Chinese language herb remedies to deal with childhood consideration deficit hyperactivity dysfunction and autism, greater than tripled on Monday — hovering greater than 280% by the shut after a 38-for-1 cut up declared on June 2 took impact. By Monday’s shut, Regencell, based in 2014 and traded on Nasdaq beneath the ticker ‘RGC’ since 2021, had a complete market capitalization of $29.7 billion, in line with S&P Capital IQ.

The inventory continued to leap on Tuesday, gaining 30%. The corporate’s yr thus far efficiency is off the charts too, having risen 59,900% in 2025. Its present market worth of $36 billion tops Lululemon, eBay and Kraft Heinz. The shares traded for pennies at one level up to now one yr.

Regencell is the most recent instance of a speculative worldwide inventory attracting consideration throughout summer season buying and selling. In August, 2022, for instance, AMTD Digital, a Hong Kong-based fintech firm, climbed 126%, briefly giving it a market worth higher than Coca-Cola and Financial institution of America.

Earlier this month, Regencell defined the inventory cut up as designed solely “to boost liquidity available in the market for the corporate’s strange shares and make the shares extra accessible to traders.” Inventory splits don’t change something essentially about an organization.

Regencell’s surge additionally got here amid an elevated give attention to various medicines after Robert F. Kennedy Jr. was sworn in as Secretary of the U.S. Division of Well being and Human Providers in February. Kennedy, a vaccine skeptic, has taken steps to discourage routine immunizations within the U.S., final week eradicating the entire members of a panel that advises the Facilities for Illness Management and Prevention on vaccines.

Regencell’s inventory usually makes large one-day swings. For instance, shares jumped roughly 30% on March 21, earlier than dropping 30% the next buying and selling day.

Obscure remedies, zero income

Regardless of the wild spike within the inventory, little is understood concerning the efficacy and commercialization of Regencell’s remedies for ADHD and Autistic Spectrum Problems.

Regencell’s enterprise facilities on a proprietary Conventional Chinese language Drugs components (TCM) developed in a partnership with TCM practitioner Sik-Kee Au utilizing his “Sik-Kee Au TCM Mind Concept.” Sik-Kee Au is the daddy of the Regencell chief govt officer Yat-Gai Au, the corporate mentioned in a 2022 assertion.

The CEO controls 86.24% of the whole variety of shares excellent, in line with FactSet information.

Three liquid-based, orally-taken TCM formulae candidates declare to handle gentle, reasonable and extreme circumstances and solely comprise pure components akin to so-called “detoxication herbs,” blood circulation herbs and digestion herbs.

“These TCM formulae kind the premise of our TCM product candidates, which we intend to develop and commercialize for the therapy of ADHD and ASD,” Regencell’s web site reads.

In its newest annual report filed final October, Regencell mentioned that it had not generated any income, nor filed for any regulatory approvals of its TCM formulation. For the fiscal years ended June 2024 and 2023, Regencell incurred complete web losses of $4.36 million and $6.06 million, respectively, in line with a submitting to the SEC.

“Now we have not generated income from any TCM formulae candidates or utilized for any regulatory approvals, nor have distribution capabilities or expertise or any granted patents or pending patent purposes and should by no means be worthwhile,” learn the submitting.

Regencell has not responded to a CNBC request for remark.

Regencell’s newest affected person case examine, dated Nov. 15, 2023, mentioned 28 sufferers got the therapy over a interval of three months in a second efficacy trial and confirmed an enchancment in signs of ADHD and ASD, in line with the corporate’s webpage.

In an earlier case, Regencell mentioned in a 2021 information launch that it handled a dozen sufferers with suspected or confirmed Covid-19 instances, utilizing a modified model of Au’s modified proprietary chilly and flu TCM components. What was described as an enchancment of Covid circumstances led Regencell to kind a three way partnership with Honor Epic Enterprises Restricted in Sept. 2021 to conduct additional exams and commercialize the corporate’s Covid therapy in nations belonging to the Affiliation of Southeast Asian Nations, in line with the assertion.

On-line buzz

The inventory has attracted little chatter on social media over the previous few years. These feedback which have been made recommend each retail dealer enthusiasm — and skepticism.

One consumer on the Reddit web page “r/Shortsqueeze” wrote on Monday that Regencell is “buying and selling like a meme coin. Purchased somewhat to see what occurs and it dropped 50% proper after lol.” One other consumer mentioned in a submit made three months in the past, “I scalp RGC on a regular basis for a little bit of revenue.” The inventory jumped 1,360% in Could alone.

On LinkedIn in Could, one investor mentioned he “cannot cease laughing,” after studying the corporate description. One other submit from a consumer within the pharmaceutical business, in line with his profile, final week mentioned Regencell has develop into the “inventory to observe” after its spike in Could on “no official information or catalysts.” One other LinkedIn consumer final month commented on Regencell, saying, “China primarily based, low quantity and no official information, bizarro.”

On X, one consumer wrote in a Monday submit, “for #CompleteBullsh__CompanyOfTheYear I nominate regencell.”

— CNBC’s Scott Schnipper contributed reporting.