Humacyte Inc. (NASDAQ: HUMA) is a biotech company working in the field of bioengineered human tissues. This is an area in bioscience that has been practiced throughout the last century. However, existing methods hold severe flaws, and Humacyte stock is determined to revolutionize this domain of medicine.
The game-changing potential of Humacyte Inc.
As far as biotechnology companies go, Humacyte Inc. (HUMA) is an incredibly interesting player, which is operating in a unique niche of tissue regeneration and organ transplant. The company’s pipeline consists of several candidates that capitalize on this area, based on a platform that relies upon aortic vascular cells and an external biodegradable polymer mesh. Humacyte has made successful strides in this domain, which makes it likely to disrupt the wider domain of autologous vein harvesting. It is common knowledge that this is a complex, painful, and time-consuming procedure with a 40% morbidity rate, and high chances of serious infection. Humacyte is on its way to taking this domain by storm, which could revolutionize critical care. It also has no late-stage competitors that come anyway close to its results.
HUMA’s financials look extremely positive, especially considering its total cash holdings of almost $190 million, of which it owes $30 million in debt. Given the company’s negotiation with pharmaceutical lending institutions, it further holds a facility to borrow an additional $20 million, if the need arises. This gives the company sufficient runway to keep development going at full throttle until 2025. By then, it is likely that commercialization would be much more realistic, making further financing far easier for its management to undertake.
HUMA stock is an interesting one to consider, given its core strengths, both in terms of development potential, as well as due to its robust financials. Despite such compelling points of optimism, the stock is down by over 60% in a single year, hinting at a major undervaluation.