A Hong Kong bio firm making no revenue is worth $36B

Hong Kong-based Regencell Bioscience reached meme-stock status this week, with its valuation soaring to $36 billion—higher than Lululemon, eBay, and Kraft Heinz.

This surge comes despite the company reporting no revenue and nearly $10 million in losses over the past two years.

Regencell’s stock soared over 280% on Monday after a 38-for-1 stock split and another 30% on Tuesday. The bio firm’s year-to-date share value is up 59,900%.

What does Regencell do?
Founded in 2014 and trading under the ticker RGC on Nasdaq since 2021, Regencell claims to develop Traditional Chinese Medicine (TCM) treatments for childhood attention deficit hyperactivity disorder (ADHD) and autism.

The formulas are based on proprietary recipes created by the CEO’s father.

However, the company lacks regulatory approvals, patents, and established distribution channels.

Some analysts say the rally reflects the growing interest in alternative medicine, partly fueled by vaccine-skeptic Robert F. Kennedy Jr.’s appointment as Health Secretary. Others compare the frenzy to the 2022 surge of AMTD Digital. 

Several social media users are calling it meme stock madness, and others are questioning the lack of transparency, fundamentals, or scientific backing in Regencell’s treatments.