HCW Biologics Inc. (NASDAQ:HCWB) surged on Friday after reporting stronger quarterly results and highlighting progress across its autoimmune pipeline.
Investor sentiment also improved after the biotech company advanced a licensing deal and reaffirmed upcoming clinical data milestones, sending the share price up 230% at last check.
According to its first-quarter results, HCW reported earnings per share of 37 cents and quarterly sales of $6.54 million, which increased from just $5,065 a year ago.
Under the Wugen License and supply agreements, HCW has recognized over $16 million in aggregate revenue since the license’s inception in 2020.
A year ago, Wugen was winding down its clinical programs in NK-Cell therapies to focus exclusively on its breakthrough CAR-T program that is in its pivotal clinical trial.
In the quarter under review, the company said that it has completed the closing of the exclusive, worldwide licensing agreement with Trimmune for the in vivo rights for HCW11-006.
The nonrefundable upfront license fee consisted of $3.5 million in gross cash proceeds and $3.5 million in-kind in the form of a transferable minority equity interest in Trimmune.
In the company press release, HCW Biologics said that it is on track to provide preliminary clinical data readout from the first two dose levels of the Phase 1 clinical study evaluating HCW9302 in alopecia areata in the first half of 2026.
There are two clinical sites actively enrolling patients, and enrollment has been on schedule.
CEO Hing C. Wong stated, “HCW9302 was selected as the lead product candidate for the Company’s autoimmune program because it has demonstrated relatively high IL-2Rα affinity and sustains serum exposure, which implies it has a strong profile for the treatment of autoimmune disorders.”
The company exited the quarter with cash and equivalents of $1.23 million, down from $1.95 million a year ago.
Going Concern Risk
The company said substantial doubt remains about its ability to continue as a going concern without additional funding. It also claims to have made early progress on a multistep financing plan.
Nasdaq granted the company a hearing on May 5 to appeal a potential delisting tied to non-compliance with the $1 minimum bid price rule.
HCWB Price Action: HCW Biologics shares are trading at around $1.11 per share at last check Friday.
Photo: Billion Photos / Shutterstock
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