Humacyte to merge with Alpha Healthcare Acquisition Corp in $1.1bn deal to advance regenerative medicine

Humacyte, Inc., a clinical-stage biotech company based in Durham, North Carolina, has announced a merger with Alpha Healthcare Acquisition Corp. (AHAC), a blank check company. The transaction values the combined entity at approximately $1.1 billion, positioning Humacyte as a pioneer in the development of universally implantable bioengineered human tissues at a commercial scale.

Innovative Biotechnology and Medical Advantages:

Humacyte’s biotechnology platform is designed to address complex medical challenges through bioengineered tissues that can be used in regenerative medicine. These tissues potentially offer significant health benefits, including lower risks of amputation and tissue rejection, elimination of waiting times, and reduced need for immunosuppression and additional surgeries. According to Rajiv Shukla, Chairman and CEO of Alpha Healthcare Acquisition, the technology provides substantial potential benefits not only to patients but also to physicians and payors by potentially improving clinical outcomes and reducing overall healthcare costs.

Financial Details and Market Impact:

Post-merger, the company will be renamed Humacyte and is expected to be listed under the ticker symbol HUMA on the Nasdaq Capital Market. The transaction gives Humacyte a pre-money valuation of $800 million and is projected to provide the enlarged company with cash proceeds of up to $255 million. This sum includes a fully committed private investment in public equity (PIPE) of $175 million and up to $100 million from the Alpha Healthcare Acquisition trust account, assuming no redemptions. Notable PIPE investors include Fresenius Medical Care, OrbiMed, and several other prominent healthcare-focused funds.

Leadership and Future Outlook:

Dr. Laura Niklason, the current CEO of Humacyte, will lead the merged entity. She expressed enthusiasm about the merger, stating, “We are very pleased to have support from top-tier investors and access to the U.S. 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.”

Expected Closing and Developmental Goals:

The deal is anticipated to close in Q2 2021, subject to approval by shareholders of both companies and customary closing conditions. The merger aims to accelerate Humacyte’s innovative platform, which is poised to revolutionize tissue repair, reconstruction, and replacement, pushing beyond the limitations of current medical practices.