Laura E. Niklason, the President, CEO, and Director of Humacyte, Inc. (NASDAQ:HUMA), recently sold a significant portion of the company's common stock. According to a Form 4 filing with the Securities and Exchange Commission, Niklason disposed of 1,500,000 shares through a series of transactions over three days, totaling approximately $6.6 million.
The sales occurred between November 18 and November 20, at prices ranging from $4.34 to $4.44 per share. These transactions were conducted by Ayabudge LLC, an entity controlled by Brady W. Dougan, with Niklason being treated as indirectly beneficially owning the shares sold. Following these transactions, Niklason retains ownership of 1,730,884 shares indirectly, and 242,054 shares directly, along with other holdings through trusts and family members.
The sales were reportedly made to pay down leverage and provide a mechanism for investors to acquire shares during a period when Humacyte was not conducting a financing transaction.
In other recent news, Humacyte, a biotechnology firm, reported its Q3 2024 financial results and pipeline progress. Despite reporting no revenue for the third quarter, the company noted a decrease in net loss to $39.2 million and raised approximately $30 million through a registered direct offering. The company's R&D expenses for the quarter were $22.9 million.
Humacyte's CEO, Dr. Laura Niklason, updated investors on the company's pipeline, including the ongoing FDA review of the ATEV Biologics License Application for vascular trauma and the development of the Bioengineered Vascular Patch (BVP) for Type 1 diabetes treatment. The company received a patent for the BVP and is preparing for the commercial launch of ATEV in vascular trauma.
Several clinical trials are underway, including Phase 3 trials for ATEV in hemodialysis, which have shown superior function. The company is also in discussions to start a Phase 3 trial for Advanced Peripheral Artery Disease (PAD), contingent on financial positioning. These are among the recent developments within Humacyte.
InvestingPro Insights
Recent insider selling at Humacyte, Inc. (NASDAQ:HUMA) comes amid a challenging financial landscape for the company. According to InvestingPro data, Humacyte's market capitalization stands at $568.07 million, with the stock price at $4.42 as of the previous close. This price represents just 44.23% of its 52-week high, reflecting recent market pressures.
InvestingPro Tips highlight that Humacyte is "quickly burning through cash" and "suffers from weak gross profit margins." These factors may have contributed to the decision by company leadership to sell shares. The company's financial health is further underscored by its negative gross profit of -$77.4 million in the last twelve months, and an adjusted operating income of -$112.49 million for the same period.
Despite these challenges, Humacyte has seen a remarkable 80.74% price total return over the past year, indicating significant investor interest. However, the stock has taken a hit recently, with a -8.88% return in the last week and a -17.42% return over the past month.
Analysts seem cautious about Humacyte's near-term prospects, with InvestingPro Tips noting that "2 analysts have revised their earnings downwards for the upcoming period" and "net income is expected to drop this year." The company is not expected to be profitable this year, which aligns with its current negative P/E ratio of -4.7.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Humacyte, providing a deeper understanding of the company's financial position and market performance.
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