HCW Biologics partners with WY Biotech for immunotherapy

MIRAMAR, Fla. - HCW Biologics Inc. (NASDAQ: HCWB), a U.S.-based clinical-stage biopharmaceutical company currently trading at $6.70 per share with a market capitalization of $303 million, has announced the completion of due diligence by WY Biotech Co., Ltd., a China-based firm, for a technology transfer report on a novel immunotherapy molecule, HCW11-006. The due diligence, which included the characterization of the cell line, was delivered on May 13, 2025, and with its completion, the licensing agreement between the two companies has become fully binding. According to InvestingPro data, the company’s stock has experienced significant pressure, declining over 84% in the past year.

Under the terms of the agreement, HCW Biologics has received a $7.0 million upfront license fee, a welcome development given the company’s current financial position. InvestingPro analysis indicates the company operates with moderate debt levels but faces challenges with short-term obligations exceeding liquid assets. Additionally, the company is eligible for further significant development milestone payments and double-digit royalties on future product sales. HCW Biologics also retains the option to recapture development and commercialization rights for HCW11-006 in the United States, Canada, Central America, and South America after the Phase 1 clinical trial concludes, without any associated payments, milestones, or royalties.

WY Biotech will bear all costs related to the research, development, manufacturing, clinical development, regulatory approval, and commercialization of HCW11-006. In contrast, HCW Biologics will be responsible for these costs within the opt-in territories, should they exercise their rights. Both companies have agreed to cooperate during the development stage, focusing on global clinical development and partnering strategies.

HCW11-006 is a part of HCW Biologics’ TRBC drug discovery and development platform, characterized as Multi-Functional Immune Cell Stimulators. Preclinical studies have shown that HCW11-006 effectively induces anti-tumor CD8+ T cell and NK cell responses without triggering unwanted side effects in solid tumor animal models.

Dr. Hing C. Wong, Founder and CEO of HCW Biologics, emphasized the strategic importance of establishing commercialization partnerships with innovative leaders in the immunotherapy field. The company’s portfolio includes over 50 molecules developed using the TRBC platform, which is designed to construct immunotherapeutics that activate targeted immune responses and are equipped with receptors targeting cancerous or infected cells.

This partnership with WY Biotech marks a significant milestone for HCW Biologics in its efforts to develop and commercialize novel treatments for diseases associated with chronic inflammation, including cancer, autoimmune, and neurodegenerative diseases. While analysts maintain a positive outlook with a $35 price target, representing significant upside potential, detailed financial analysis and additional insights are available through InvestingPro, which offers over 10 additional key insights about the company’s financial health and market position.

The information for this report is based on a press release statement from HCW Biologics Inc.

In other recent news, HCW Biologics Inc. has made several significant announcements that may interest investors. The company recently revealed findings on a proprietary fusion protein, HCW9206, which could enhance the efficacy and reduce the costs of CAR-T therapies. This advancement, presented at the American Association of Immunologists 2025 Annual Meeting, shows promise in improving CAR-T cell production processes, potentially benefiting treatments for various cancers. Additionally, HCW Biologics has entered into key agreements with Square Gate Capital Master Fund, LLC, facilitating the resale of its common stock, as indicated in a recent SEC filing. The SEC has opted not to review the company’s preliminary Registration Statement, which could impact the liquidity of HCW Biologics’ stock.

Furthermore, the company’s Board of Directors has approved a 1-for-40 reverse stock split to comply with Nasdaq’s minimum bid price requirements. This move will reduce the number of issued and outstanding shares but will not affect shareholder ownership percentages. In legal matters, HCW Biologics faces a lawsuit from BE&K Building Group, LLC, alleging breach of contract related to its new facilities’ construction. The company is seeking alternative financing options to address ongoing financial challenges associated with this project.

Lastly, during a Special Meeting of Stockholders, HCW Biologics received approval for several proposals, including the reverse stock split and the issuance of shares linked to an Equity Purchase Agreement and Senior Secured Notes. These developments underscore the company’s ongoing efforts to navigate financial and operational challenges while pursuing strategic opportunities.

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