A Hong Kong company developing herbal treatments for ADHD has seen its stock price surge over 56,000% this year following a 38-for-1 stock split, despite having no revenue and ongoing losses.
Regencell Bioscience CEO Yat-Gai Au's 86% stake in the company is now worth $25.6 billion, as reported by Bloomberg.
The company has never turned a profit, losing $4.4 million in 2024, and hasn't had a chief medical officer since 2022.
The company sells traditional Chinese medicine formulas developed by Au's father, Sik-Kee Au, a former security alarm business owner with an electrical engineering background. These treatments, trademarked as Brain Theory, consist of twice-daily herbal compounds targeting neurocognitive disorders. The elder Au faced professional misconduct charges in Hong Kong in 2021 for overprescribing medicine.
Au's personal connection to the business stems from his own childhood ADHD diagnosis. Despite learning challenges, he graduated from UC Berkeley's Haas School of Business and worked at Deutsche Bank before founding Regencell in 2014. He has invested over $12 million of his own money into the company since its 2021 IPO.
According to Sherwood News, Regencell Bioscience's meteoric rise appears driven by technical factors — the company's shares have limited public availability with 93.8% insider ownership and high short interest at 94.81% of float, as reported in recent market data. This combination typically creates conditions for dramatic price movements when short sellers rush to cover their positions.
Previously:
• 11th-century herbal remedy guide now digitized and online
• Judge rules herbal tea purchase doesn't count as damages, personally attacks our entire lifestyle
