Bioengineered human tissue company Humacyte nears biotech SPAC deal to go public.
Humacyte, a transformative biotech platform company capable of manufacturing universally-implantable bioengineered human tissue at commercial scale, announced today it is going public via a merger with newly formed blank cheque company: Alpha Healthcare Acquisition Corp.
Longevity.Technology: Clinical-stage biotech Humacyte is developing a disruptive biotechnology platform to deliver universally implantable bioengineered human tissues and organs designed to improve the lives of patients and transform the practice of medicine. By developing and manufacturing acellular tissues to treat a wide range of diseases, injuries and chronic conditions, Humacyte will be able to provide an off-the-shelf therapy that is also highly-resistant to infection.
With 87 patents granted and 21 patents pending, a proprietary human cell bank and biomanufacturing processes, $150+ billion in the estimated total size of markets targeted by Humacyte’s products, if approved, this company is certainly one we’ll be keeping an eye on!
Humacyte’s initial opportunity, a portfolio of human acellular vessels (HAVs), is currently in late-stage clinical trials targeting multiple vascular applications, including vascular trauma repair, arteriovenous access for hemodialysis, and peripheral arterial disease. Pre-clinical development is also underway in coronary artery bypass grafts, pediatric heart surgery, treatment of type 1 diabetes, and multiple novel cell and tissue applications. Humacyte’s HAVs were the first product to receive the FDA’s Regenerative Medicine Advanced Therapy (RMAT) expedited review designation and received priority designation for the treatment of vascular trauma by the US Secretary of Defense.
“Our innovative platform has the potential to support tissue repair, reconstruction, and replacement without the limitations of existing standards of care.”
Alpha Healthcare Acquisition Corp is a special purpose acquisition company (SPAC) led by Rajiv Shukla; it today announced the execution of a definitive business combination agreement along with a fully-committed PIPE financing agreement with Humacyte, Inc. Transaction values Humacyte at a pre-money valuation of $800 million with existing Humacyte shareholders rolling over 100% of their equity into equity of the combined company. Following the transaction closing, Humacyte is expected to have a market capitalisation of $1.1 billion.
Upon closing of the transaction, AHAC will be renamed Humacyte, Inc and will be led by Laura Niklason, MD, PhD, Chief Executive Officer of Humacyte. The combined company’s common stock is expected to be listed on the Nasdaq Capital Market under the ticker symbol HUMA.
A group of leading investors has committed to participate in a common stock PIPE of approximately $175 million at $10.00 per share that will close simultaneously with the business combination.
Humacyte, Inc will also receive up to $100 million held in AHAC’s trust account at closing of the transaction, subject to any redemptions by existing AHAC shareholders. Additionally, existing Humacyte investors will be subject to a 12-month lockup with 50% eligible for sale after 6 months if the 20-day VWAP over any 30-day period equals or exceeds $15.00.
“Humacyte is a global leader in developing bioengineered tissues for use in regenerative medicine,” said Dr Niklason. “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-capitalized to provide first-in-class therapies to treat several life-threatening diseases. Our innovative platform has the potential to support tissue repair, reconstruction and replacement without the limitations of existing standards of care. Humacyte’s bioengineered tissues can be produced at commercial scale and, after regulatory approval, are designed to be stored in hospitals and other surgical centers, and immediately available to surgeons whenever needed.”
Said Rajiv Shukla, Chairman & CEO of AHAC, “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-hospitalizations.”
Humacyte has assembled a seasoned team of 130 employees, consisting of scientists, clinical, manufacturing, regulatory and commercial experts. Following the closing of the transaction, Dr Niklason and Mr Shukla will be joined by certain board members of Humacyte to form the board of directors.