Humacyte Stock Plunges 22.78% Amid FDA Controversy

On March 26, 2025, Humacyte's stock experienced a significant drop of 22.78% in pre-market trading, reflecting a tumultuous period for the biotechnology company.

Humacyte recently announced the pricing of a public offering of 25,000,000 shares of its common stock at $2.00 per share, aiming to raise $50 million in gross proceeds. The company plans to use the net proceeds to fund the commercialization of SYMVESS™ in the vascular trauma indication, develop its pipeline products, and support working capital and general corporate purposes.

However, the stock's decline can be attributed to reports alleging that the FDA approved Humacyte's SYMVESS, an artificial blood vessel, despite safety concerns raised by a former FDA employee. This controversy has raised questions about the safety and efficacy of Humacyte's products, contributing to the stock's volatility.

Additionally, Humacyte's stock has been underperforming in recent months, dropping by 6.21% in the past month alone. This underperformance is in contrast to the broader Medical sector and the S&P 500, which have seen losses of 1.17% and 5.73%, respectively. The company's stock offering and the subsequent market reaction highlight the challenges Humacyte faces in navigating regulatory scrutiny and market expectations.