Herbal medicine firm Regencell Bioscience skyrockets 60,000%, stuns market

A Hong Kong-based company with no revenue, no regulatory approvals, and fewer than 15 employees has seen its stock surge nearly 60,000 per cent year-to-date on June 16, 2025.
Traditional medicine firm Regencell Bioscience Holdings, listed on the US stock exchange, has rallied sharply in recent days, including a nearly fourfold jump in a week, stunning market watchers and prompting questions over the nature of the gains and what might be driving them.
Regencell Bioscience was founded in 2014 and incorporated in the Cayman Islands, though its operations are run through two subsidiaries based in Hong Kong. It went public on the Nasdaq in July 2021, raising approximately $21 million through its initial public offering.
Screengrab of Regencell Bioscience stock movement
Regencell Bioscience company profile: What we know
The company develops liquid-based formulas rooted in traditional Chinese medicine (TCM), which it claims can help manage neurological conditions such as Attention Deficit Hyperactivity Disorder (ADHD) and Autism Spectrum Disorder (ASD). These are proprietary blends made from natural ingredients and are still undergoing internal trials.
No regulatory approvals have been secured, and the company has not launched any commercial products. Despite this, the company is now worth more on paper than many established global companies.
Regencell reported a combined loss of $10.4 million over the last two financial years and has yet to generate any revenue. The company employs a small team of around 12 people. The company's founder and chief executive officer, Yat-Gai Au, owns approximately 86 per cent of the outstanding shares, effectively controlling the company. Track LIVE Stock Market Updates
How a stock split led to a sudden surge
The rise in Regencell's share price appears to have been triggered by a 38-for-1 stock split, which came into effect in early June. While such splits do not impact a company's fundamental valuation, they can generate interest by lowering the per-share price. Following the split, Regencell's share price jumped 283 per cent in a single day, briefly pushing its market capitalisation close to $39 billion, higher than companies such as Kraft Heinz and Reddit.
The stock rallied despite the absence of new business developments, product announcements, or regulatory progress. Much of the activity appears speculative, with discussion on retail investor forums such as Reddit fuelling interest in Regencell as a so-called 'meme stock'.
The situation stands as an example of how low-float stocks can spiral out of control in speculative markets.
Why the stock may have risen?
Beyond the stock split, several factors may have contributed to Regencell's rise. Only 30 million of the company's 500 million shares are publicly traded. That means even small spikes in demand can move the price dramatically. The tightly held structure, with most shares owned by the founder and a small group of investors, makes the stock susceptible to volatility.
There may also be a broader sentiment at play.
US interest in natural health may have played a role
The surge coincided with renewed debate in the United States around vaccine alternatives and natural health remedies, including comments by public figures questioning conventional immunisation practices. Regencell's positioning as a traditional medicine company, despite making no claims in this space, may have drawn attention from retail traders looking for exposure to alternative healthcare options.
What does this soaring valuation mean for Regencell?
A market capitalisation of $39 billion for a firm with under 15 employees has raised eyebrows across the financial community. Despite its massive paper valuation, Regencell remains an early-stage company with no commercial revenue and limited operational capacity.
Regulatory warnings have already flagged this type of activity. The Financial Industry Regulatory Authority (FINRA) and the US Securities and Exchange Commission have cautioned investors about small-cap foreign stocks with limited free float being vulnerable to manipulation.
Alternative medicine market on the rise
Globally, interest in traditional and alternative medicine is rising. The complementary and alternative medicine (CAM) market was valued at $178.5 billion in 2024 and is projected to reach $919.5 billion by 2034, growing at a compound annual growth rate of 17.9 per cent, according to Global Market Insights, driven by rising demand for holistic, non-invasive, and natural health solutions.
Market research also expects China's TCM industry, valued at $19.5 billion in 2022, to reach nearly $48 billion by 2030. Policy support and public interest in wellness products have driven sustained growth. However, stock surges in the sector have typically followed regulatory decisions or mergers, and have not approached the scale seen in Regencell's case.
Ayurveda market grows with demand
In India, the Ayurveda and herbal health segment has also expanded rapidly, supported by both government backing and rising consumer demand. The domestic market is projected to grow to ₹36 trillion by 2033 from ₹8.76 trillion in 2024, according to research shared by Imarc Group. Listed companies such as Dabur and Kerala Ayurveda have delivered strong financial performances, driven by product demand and retail penetration. Unlike Regencell, their valuations have been more closely tied to business metrics.
As of Wednesday, June 18, the stock had dropped 18 per cent in intraday trading to $63.35 on Nasdaq, but it was still up 48,630.77 per cent year-to-date.

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