Street Calls of the Week
HCW Biologics Inc. (NASDAQ:HCWB), currently valued at $8.4 million in market capitalization, reported this week that WY Biotech Co., Ltd. has indicated it will likely not meet the amended deadline for a $7 million upfront license fee under their worldwide exclusive license agreement. According to InvestingPro data, this payment is particularly significant as the company faces liquidity challenges with a concerning current ratio of 0.11. The payment, previously extended to on or before September 30, 2025, remains outstanding as WY Biotech has not finalized agreements with its contract development and manufacturing organization or investors.
According to a statement in the SEC filing, HCW Biologics and WY Biotech are currently negotiating potential further revisions and additions to the agreement. The company previously delayed recognition of the upfront payment due to these pending arrangements.
This information is based on a press release statement included in the company’s Form 8-K filing with the Securities and Exchange Commission.
In other recent news, HCW Biologics Inc. announced the successful development of a second-generation pembrolizumab-based immunotherapy, which showed improved effectiveness against solid tumors, particularly pancreatic and ovarian cancers, in preclinical studies. The company utilized its proprietary TRBC platform technology to enhance the therapy, which aims to overcome the limitations of current immune checkpoint inhibitors. Additionally, HCW Biologics reported the development of multi-specific T-cell engagers targeting solid tumors, especially pancreatic cancer. These candidates demonstrated promising results in laboratory tests and humanized mouse models.
In corporate developments, HCW Biologics received a delisting notice from the Nasdaq Stock Market due to non-compliance with the Equity Rule as of June 30, 2025. The company plans to request a hearing to address this issue and is considering options to regain compliance. Furthermore, Armistice Capital Master Fund Ltd. fully exercised its pre-funded warrants to purchase 54,000 shares of HCW Biologics common stock. This exercise completes the agreement under which Armistice had previously acquired 459,140 shares.
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