HCW Biologics Inc. (HCWB), a clinical-stage biopharmaceutical company focused on developing immunotherapies, announced receipt of full payment of the $7 million upfront license fee from Beijing Trimmune Biotech Co., Ltd for the development and commercialisation of HCW11-006.
The deal also provides Trimmune an option to license the exclusive regional China rights for HCW9302, the firm's clinical-stage molecule currently being evaluated in a Phase 1 trial for autoimmune disorders.
Following the news, HCWB is down 13.18% at $0.81.
HCW11-006 is HCW Biologics's immune cell stimulator, and HCW9302 is an injectable interleukin-2 fusion protein complex in phase 1 for the treatment of autoimmune and proinflammatory diseases, such as alopecia areata.
Trimmune is a new operating entity responsible for the development and commercialisation of HCW11-006, which was formed by WY Biotech Co., Ltd., a China-based company, specialising in the early-stage development of recombinant protein drugs and gene/cell therapies.
The upfront license fee included a cash fee of $3.5 million and a minority co-founder transferable equity position in Trimmune valued at $3.5 million based on the most recent round of financing with third parties.
HCW Biologics is also eligible to receive significant development milestone payments and double-digit royalties on future product sales, according to the deal.
Trimmune is responsible for all costs associated with the Phase 1 clinical trial in China and is expected to begin in the first half of 2027.
In addition, after the conclusion of the Phase 1 clinical trial in China, HCW Biologics has a payment-free, milestone-free, and royalty-free option to recapture all rights to the development and commercialisation of HCW11-006 for in vivo applications in the United States, Canada, Central America, and South America. Notably, the deal also provides Trimmune with the option to license the exclusive regional rights in China to manufacture, develop, and commercialise HCW9302.
HCW9302 is currently being evaluated in a Phase 1 clinical study in patients with alopecia areata, which was initiated in November 2025.
HCW Biologics is entitled to receive additional payments if Trimmune exercises its option to license HCW9302 for regional rights in China.
Trimmune investors include CITIC Medical Fund and TigerMed's TigerYeah Capital Fund.
CITIC Medical Fund is a multi-billion-dollar investment fund focused on companies primarily in pharmaceuticals, biotechnology, medical devices, and diagnostics, and TigerMed is a leading Contract Research Organisation(CRO).
HCWB has traded between $0.47 and $17.8 in the last year. The stock closed Monday's trade at $0.93.
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