View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
  2. Company News
February 22, 2021

Humacyte agrees SPAC merger to go public with bioengineered tissue tech

Human tissue bioengineering biotech Humacyte has entered into a business combination agreement with special purpose acquisition company (SPAC) Alpha Healthcare Acquisition Corp (AHAC).

By Allie Nawrat

Human tissue bioengineering biotech Humacyte has entered into a business combination agreement with special purpose acquisition company (SPAC) Alpha Healthcare Acquisition Corp (AHAC).

Free Report
img

What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

The deal allows Humacyte to become a public company listed on the Nasdaq, with access to up to $100m in AHAC’s trust account.

In addition to the $100m in funding from the transaction, investors have participated in a $175m Private Investment in Public Equity (PIPE) investment at $10 per share into Humacyte. PIPE investors included OrbiMed, Alexandria Venture Investments and Fresenius Medical Care, a global renal disease healthcare provider already working in partnership with Humacyte.

As a result of the deal, Humacyte has been valued at $800m and is expected to have a market capitalisation of $1.1bn.

The transaction has been approved by both AHAC and Humacyte’s boards, but still requires approval from both companies’ shareholders. Humacyte expects the deal to close in the second quarter of 2021.

Based in North Carolina, US, Humacyte specialises in developing off-the-shelf implantable bioengineered human tissue. It has developed human acellular vessels (HAVs) that support the repair, reconstruction and replacement of blood vessels across multiple indications.

These HAVs are universally implantable, highly resistant to infection and do not rely on donor tissue and related immunogenicity challenges, as well as being regenerative and self-healing. They are particularly useful to support haemodialysis for renal diseases, peripheral arterial disease and vascular trauma without the need for immunosuppressive drugs.

Humacyte is now producing other bioengineered products using the same platform to develop new products to tackle other conditions, including coronary artery bypass surgery and type 1 diabetes.

The company’s CEO Dr Laura Niklason, who will remain in her position following the closure of the transaction, said: “Humacyte is a global leader in developing bioengineered tissues for use in regenerative medicine.

“Our innovative platform has the potential to support tissue repair, reconstruction and replacement without the limitations of existing standards of care.

“We are very pleased to have support from top-tier investors, and access to the US capital markets following the closing of this proposed transaction, which will leave Humacyte well-capitalised to provide first-in-class therapies to treat several life-threatening diseases.”

AHAC chairman and CEO Said Rejiv Shukla made it clear that Humacyte’s platform was central to the SPAC’s interest in the transaction. Fierce Biotech reported that AHAC looked at 95 other biotechs before choosing Humacyte.

Shukla said: “Humacyte’s innovative biotechnology platform is aimed at solving intractable medical problems for (1) Patients: potential for lower risk of amputation and tissue rejection, elimination of waiting times, and reduced need for immunosuppression and additional surgeries; (2) Physicians: potential for better clinical outcomes and ease of use; (3) Payors: potential cost savings by avoiding amputations and infections, additional surgeries, medication and re-hospitalisations.”

Humacyte decided on the SPAC route to go public, rather than the standard initial public offering (IPO) approach, because the process allows more time to focus on selling its technology to investors.

Niklason told Fierce Biotech: “Because of that differentiated story, we do well when we can talk to investors and explain to them the technology and its potential.

“If we consider the current era with an IPO roadshow that lasts two, three, four, five days where we get one 45-minute meeting with each investor, it really doesn’t do the technology and the company justice.”

Related Companies

Free Report
img

What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The pharmaceutical industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Pharmaceutical Technology