Nasdaq-traded Chinese herb inventory with out a revenues rallies 58,000% to most sensible Lululemon in marketplace price

Regencell Bioscience Holdings, an early-stage, Hong Kong-based bioscience corporate with out a earnings, is the most recent speculative in a foreign country inventory to draw an bizarre surge in buying and selling call for.

Shares of Regencell, which says it develops conventional Chinese herb therapies to regard youth consideration deficit hyperactivity dysfunction and autism, greater than tripled on Monday — hovering greater than 280% via 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 marketplace capitalization of $29.7 billion, in keeping with S&P Capital IQ.

The inventory persisted to leap on Tuesday, gaining greater than 25%. The corporate’s 12 months up to now efficiency is off the charts too, having risen greater than 58,000% in 2025. Its present marketplace price of $36 billion tops Lululemon, eBay and Kraft Heinz. The stocks traded for pennies at one level up to now 365 days.

Regencell is the most recent instance of a speculative world inventory attracting consideration all through summer season buying and selling. In August, 2022, for instance, AMTD Digital, a Hong Kong-based fintech corporate, climbed 126%, in short giving it a marketplace price more than Coca-Cola and Bank of America.

Earlier this month, Regencell defined the inventory cut up as designed only “to enhance liquidity in the market for the company’s ordinary shares and make the shares more accessible to investors.” Stock splits don’t alternate the rest essentially about an organization.

Regencell’s surge additionally got here amid an higher center of attention on selection drugs after Robert F. Kennedy Jr. was once sworn in as Secretary of the U.S. Department of Health and Human Services in February. Kennedy, a vaccine skeptic, has taken steps to discourage regimen immunizations within the U.S., remaining week taking away the entire individuals of a panel that advises the Centers for Disease Control and Prevention on vaccines.

Regencell’s inventory frequently makes massive one-day swings. For instance, stocks jumped kind of 30% on March 21, prior to losing 30% the next buying and selling day.

Obscure therapies, 0 earnings

In spite of the wild spike within the inventory, little is understood in regards to the efficacy and commercialization of Regencell’s therapies for ADHD and Autistic Spectrum Disorders.

Regencell’s trade facilities on a proprietary Traditional Chinese Medicine method (TCM) evolved in a partnership with TCM practitioner Sik-Kee Au the usage of his “Sik-Kee Au TCM Brain Theory.” Sik-Kee Au is the father of the Regencell leader government officer Yat-Gai Au, the corporate stated in a 2022 commentary.

The CEO controls 86.24% of the whole collection of stocks remarkable, in keeping with FactSet information.

Three liquid-based, orally TCM formulae applicants declare to handle gentle, reasonable and serious prerequisites and simplest comprise herbal components akin to so-called “detoxication herbs,” blood flow herbs and digestion herbs.

“These TCM formulae form the basis of our TCM product candidates, which we intend to develop and commercialize for the treatment of ADHD and ASD,” Regencell’s web page reads.

In its newest annual record filed remaining October, Regencell stated that it had no longer generated any earnings, nor filed for any regulatory approvals of its TCM formulation. For the fiscal years ended June 2024 and 2023, Regencell incurred overall web losses of $4.36 million and $6.06 million, respectively, in keeping with a 20F submitting to the SEC.

“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,” learn the submitting.

Regencell has no longer answered to a CNBC request for remark.

Regencell’s newest affected person case find out about, dated Nov. 15, 2023, stated 28 sufferers got the remedy over a length of 3 months in a 2d efficacy trial and confirmed an development in signs of ADHD and ASD, in keeping with the corporate’s webpage.

In an previous case, Regencell stated in a 2021 information free up that it handled a dozen sufferers with suspected or showed Covid-19 instances, the usage of a changed model of Au’s changed proprietary chilly and flu TCM method. What was once described as an development of Covid prerequisites led Regencell to shape a three way partnership with Honor Epic Enterprises Limited in Sept. 2021 to habits additional assessments and commercialize the corporate’s Covid remedy in ASEAN international locations, in keeping with the commentary.

Online buzz

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

One consumer at the Reddit web page “r/Shortsqueeze” wrote on Monday that Regencell is “trading like a meme coin. Bought a little to see what happens and it dropped 50% right after lol.” Another consumer stated in a publish made 3 months in the past, “I scalp RGC everyday for a bit of profit.” The inventory jumped 1,360% in May on my own.

On RelatedIn in May, one investor stated he “can not forestall guffawing,” after studying the corporate description. Another publish from a consumer within the pharmaceutical trade, in keeping with his profile, remaining week stated Regencell has turn out to be the “stock to watch” after its spike in May on “no official news or catalysts.” Another RelatedIn consumer remaining month commented on Regencell, announcing, “China based, low volume and no official news, bizarro.”

On X, one consumer wrote in a Monday publish stated, “for #CompleteBullsh__CompanyOfTheYr I nominate regencell.”

— CNBC’s Scott Schnipper contributed reporting.