Investing.com - BTIG maintained its Buy rating and $6.00 price target on Humacyte stock (NASDAQ:HUMA) following the company's announcement of a $20 million registered direct offering and preliminary fiscal 2025 results.
Humacyte reported total revenue of $2.0 million for fiscal year 2025, with product sales of $1.4 million. Fourth-quarter product sales reached $429,000, down 39% from $703,000 in the third quarter and below BTIG's estimate of $1.3 million. The stock has declined 68% over the past year and currently trades at $0.88, near its 52-week low. According to InvestingPro analysis, the company is quickly burning through cash while suffering from weak gross profit margins.
The company announced a $1.475 million purchase commitment for clinical evaluation in Saudi Arabia and submitted for marketing authorization in Israel. The Department of Defense recently included funding for procurement of bioengineered blood vessels.
BTIG estimates Humacyte sold approximately 17 to 18 Symvess units in the fourth quarter, down from roughly 29 units in the third quarter. The firm noted trauma sales are variable quarter-to-quarter and pricing dynamics may affect unit estimates.
BTIG said the additional financing at discounted pricing combined with preliminary fourth-quarter results will limit near-term share appreciation. The firm plans to update its model following the full fourth-quarter earnings release, scheduled for March 26. For deeper insights into Humacyte's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available for this and 1,400+ other US equities on InvestingPro.
In other recent news, Humacyte Inc. announced a minimum purchase commitment of $1.475 million for its Symvess acellular tissue engineered vessel in Saudi Arabia. This commitment supports a clinical evaluation and outreach program in hospitals within the country. Simultaneously, Humacyte is in negotiations to establish a joint venture and license for commercializing Symvess in Saudi Arabia. Additionally, the company raised $20 million through a registered direct offering with institutional investors, expecting to receive the proceeds before deducting expenses.
In another development, Humacyte submitted a Marketing Authorization Application to the Israel Ministry of Health for the approval of Symvess for arterial trauma repair. This follows FDA approval of the product for specific vascular applications in December 2024. D. Boral Capital and BTIG both reiterated their Buy ratings on Humacyte stock, with price targets of $25.00 and $6.00, respectively. BTIG's rating follows news of funding in the U.S. Department of Defense Appropriations Act for evaluating biologic vascular repair technologies for military use.
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