Elevai Labs (ELAB) Surges 145% in Premarket, Firmly Rejecting Its ATL

 Key takeaways:

• Elevai Labs’ stock experienced a significant premarket surge, growing from $0.69 to $1.69.
• After completing its IPO in November at $4.00 per share, Elevai Labs’ stock price faced downward pressure, hitting a low of $0.69.
• The recent premarket increase in ELAB’s stock price suggests potential market interest – according to our algorithm, the stock could grow by 400% in the coming months.

Elevai Labs sees a strong uptrend following a stem cell-focused deal with INmune Bio

Elevai Labs (ELAB), a healthcare company developing regenerative skincare applications, saw an impressive uptrend in the price of its stock in the premarket. The highest closing price the stock reached was $1.69, which was a nearly 145% increase over the close price of $0.69 reached during the regular trading hours on Wednesday. At the time of writing, the premarket price was $1.59.

ELAB stock surged from $0.69 to $1.69 during premarket hours. Image source: TradingView

The massive price surge follows the license agreement the company entered into with INmune Bio (INMB) in mid-January. According to the 8-K filing with the Securities and Exchange Commission (SEC), the agreement grants Elevai Labs the rights to use INmune Bio’s various equipment and processes, including those relating to stem cells. 

Here’s the relevant information from the filing:

“Under the License Agreement, INmune granted the Company certain worldwide exclusive and non-exclusive license rights to develop, manufacture, and commercialize INmunes’s EMx technology, (“EMx”) a proprietary equipment, processes and consumables useful for isolation and current Good Manufacturing Practice (“cGMP”) manufacture of human umbilical cord derived mesenchymal stromal cells (“hUMSCs”,) for a period of ten years from the effective date of the License Agreement (collectively, the “Field”).”

It’s worth noting that the license agreement follows Elevai’s press release from November 2023, in which the company outlined the acquisition of a license agreement for proprietary stem cell manufacturing technology from INmune Bio.

Elevai Labs’ IPO was completed in November. The company sold 1.5 million shares at a public offering price of $4.00. Since then, the price of ELAB has faced stiff selling pressure, with the stock reaching a bottom price of $0.69 on the last day of January.

Premarket bump sign of a trend reversal?

The massive increase in ELAB’s price during the premarket could be a sign of a renewed market interest. After all, the stock is trading over 80% removed from its IPO price, which might entice investors to get in on the cheap. 

According to our ELAB prediction algorithm, the stock could see over 400% upside from its last closing price of $0.69 in the next 3 months. The highest price is forecasted for the end of March when the price could reach as high as $3.49.

It’s worth noting that healthcare stocks saw relatively poor performance in 2023, with the sector as a whole showing worse performance than the broader market – the S&P 500 Health Care Sector Index grew by 5.7%, whereas the S&P 500 Index increased by 17.6%. Still, there’s considerable upside to the health sector, as the fundamental factors that contribute to its long-term growth – like the aging population and increasing number of people – remain unchanged. For investment ideas, check our selection of the best healthcare stocks in 2024.