Longevity Health slips after big rally triggered by merger announcement

Shares of Longevity Health Holdings, a maker of regenerative skin care products, fell nearly 13% yesterday, April 15, following a 67% surge the previous day. The rally was triggered by an announced merger with diagnostic test provider 20/20 BioLabs. Noble Capital Markets points out that this is neither Longevity’s first nor likely last deal as it positions itself as a “unique micro-cap consolidator” in the rapidly growing longevity space.

Longevity, known as Carmell until March 10, saw its stock drop nearly 13% on the Nasdaq yesterday to close at $0.178 per share. The losses have continued in premarket trading today, April 16, with shares down another 12%. The selloff followed a sharp surge on Monday, when Longevity jumped 67%, reaching an intraday high of $0.31 per share, with trading volume nearly 47 times the daily average.

On Monday, Longevity announced it would merge with 20/20 BioLabs, a privately owned diagnostics company behind a multi-cancer early detection blood test, as well as a forthcoming longevity test targeting inflammatory biomarkers linked to chronic diseases such as dementia and diabetes.

Longevity expects to save $1 million in operating expenses through synergies and to double its revenue to $7-8 million in 2025.

Under the terms of the merger, Longevity shareholders will get 49.9% of the combined company, and 20/20 BioLabs shareholders 50.1%, with the potential to increase their stake based on performance milestones.

The deal is expected to close in the third quarter. The combined company will continue trading under Longevity’s current ticker.

The merger is part of Longevity’s new strategy, announced on March 10, called “Healthy Aging, Inside and Out.” At the time, the company also unveiled a rebranding, including a name and logo change.

According to CEO Rajiv Shukla, the new name better reflects the company’s focus on longevity and healthy aging, with a business model that spans bio-aesthetics and eventually diagnostics and nutrition.

Following the merger with 20/20 BioLabs, Longevity’s physicians will be able to use 20/20 BioLabs diagnostic tools to create personalized bio-aesthetic programs. Meanwhile, Longevity’s products will be offered to 20/20 BioLabs client base, including many firefighters who are regularly exposed to extreme conditions.

The merger underscores a new theme: convergence in wellness, biotech, and diagnostics, Noble Capital Markets argues. The deal comes just four months after Longevity acquired skin and hair care firm Elevai Skincare. Meanwhile, more acquisitions are on the horizon in 2025, said Shukla.

Noble sees Longevity as a unique micro-cap consolidator of the fast-evolving healthy aging space. Investors, it notes, should pay attention as the company scales from niche science to potentially mainstream longevity solutions.