In a recent disclosure, Brady W. Dougan, a director at Humacyte, Inc. (NASDAQ:HUMA), reported selling a significant portion of his holdings in the company. The transactions, which took place over a three-day period from November 18 to November 20, involved the sale of a total of 1,500,000 shares of Humacyte's common stock.
The shares were sold through Ayabudge LLC, an entity controlled by Dougan. The sales were executed at weighted average prices, with per-share prices ranging from $4.34 to $4.44, resulting in a total transaction value of approximately $6.6 million. Following these transactions, Dougan's indirect ownership, through Ayabudge LLC, stands at 1,730,884 shares.
These transactions were reportedly made to pay down leverage while allowing investors to acquire shares at a time when Humacyte was not conducting any financing transactions or making additional shares available for purchase.
In other recent news, Humacyte, a biotechnology company, reported key developments in its Q3 2024 earnings call. Despite recording no revenue for the quarter, the company saw a decrease in net loss to $39.2 million and successfully raised approximately $30 million through a registered direct offering. The company's R&D expenses were reported at $22.9 million.
Humacyte's pipeline progress includes an ongoing FDA review of the ATEV Biologics License Application for vascular trauma, and the development of the Bioengineered Vascular Patch for Type 1 diabetes. The company also received RMAT designation for ATEV in Advanced Peripheral Artery Disease and the U.S. Patent Office allowed a patent for Humacyte's BVP for treating Type 1 diabetes.
Additionally, Humacyte is preparing for the commercial launch of ATEV in vascular trauma and is strategically managing resources across pipeline programs. The company is also in discussions to start a Phase 3 trial for PAD, dependent on financial positioning. These are the recent developments in the company's operations.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Humacyte's financial situation and market performance, providing context to the director's stock sale. The company's market capitalization stands at $568.07 million, reflecting its current valuation in the biotech sector.
Humacyte's stock has experienced significant volatility recently. An InvestingPro Tip notes that the stock has taken a big hit over the last week, with data showing a 1-week price total return of -8.88%. This short-term decline is part of a broader trend, as the stock has fared poorly over the last month with a -17.42% return.
Despite these recent setbacks, Humacyte has shown impressive long-term performance. The 1-year price total return stands at a robust 80.74%, indicating strong investor interest over the past year. This aligns with another InvestingPro Tip highlighting the high return over the last year.
However, potential investors should be aware that Humacyte is currently not profitable, with a negative gross profit of -$77.4 million in the last twelve months. The company is also burning through cash quickly, which may explain the director's decision to sell shares.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for Humacyte, providing a more comprehensive view of the company's financial health and market position.
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