HCW Biologics Secures Exclusive Worldwide License Deal for HCW11-006 Fusion Immunotherapeutic with Upfront \$7 Million Payment

Key Highlights

• HCW Biologics Inc. (NASDAQ: HCWB) has closed an exclusive worldwide license agreement with Beijing Trimmune Biotech Co., Ltd. for its promising fusion immunotherapeutic, HCW11-006.
• The deal delivers an upfront license fee with a total value of \$7.0 million, split evenly between \$3.5 million in cash and \$3.5 million in a transferable equity interest in Trimmune.
• Trimmune, a new entity established by WY Biotech and backed by major investment funds (including CITIC Medical Fund and Tiger Yeah Capital Fund of TigerMed), will drive HCW11-006 development and commercialization in China.
• Initiation of a Phase 1 clinical trial for HCW11-006 in China is expected in the first half of 2027.
• HCW Biologics retains a “free” option to reclaim all rights to develop and commercialize HCW11-006 in the Americas after the Phase 1 trial in China, without any milestone or royalty payments required.
• HCW Biologics is eligible to receive significant future development milestone payments, double-digit royalties on product sales, and a portion of proceeds from any further transactions involving HCW11-006.
• The agreement also grants Trimmune an option to license exclusive regional rights in China for HCW Biologics’ clinical-stage autoimmune molecule, HCW9302, with additional payments due upon exercise.

Details of the Transaction

The \$7 million upfront payment consists of \$3.5 million in cash and a \$3.5 million minority co-founder equity stake in Trimmune, which is based on the company’s latest financing round. This unique structure gives HCW Biologics both immediate liquidity and a potential upside from Trimmune’s growth and success. Trimmune itself is led by an experienced team with a strong track record in drug development and commercialization for the Chinese pharmaceutical market.

Importantly for shareholders, HCW Biologics has negotiated a “payment-free, milestone-free, and royalty-free” option to recapture all rights for HCW11-006 in the U.S., Canada, Central America, and South America following completion of the initial Phase 1 trial in China. This means HCW Biologics can potentially reclaim valuable territory rights without any additional cost, a highly attractive term that preserves long-term strategic flexibility and upside.

HCW Biologics is also entitled to substantial additional compensation if Trimmune exercises its option to license HCW9302, its lead autoimmune drug candidate currently in Phase 1 clinical study for alopecia areata. Trimmune will bear all costs of the initial Phase 1 trial for HCW11-006, minimizing financial risk for HCW Biologics.

Potential Impact for Shareholders

• This transaction immediately strengthens HCW Biologics’ balance sheet with non-dilutive capital (cash and equity interest) and reduces financial risk for its pipeline development.
• If the Phase 1 trial is successful and Trimmune exercises its additional license options, it could trigger further significant milestone payments and royalty streams for HCW Biologics.
• The “free” option to reclaim Americas’ rights following the China trial is a unique and potentially highly valuable strategic asset.
• Positive developments in the Phase 1 trial or commercialization could be material catalysts for the company’s share price, given the large, unmet medical needs targeted by HCW11-006 and the potential for global expansion.

Company Background

HCW Biologics is a clinical- and commercial-stage U.S. biopharmaceutical company specializing in fusion immunotherapies for autoimmune diseases, cancer, and senescence-associated dysplasia. Its pipeline includes HCW9302 (an IL-2 fusion molecule in Phase 1 for alopecia areata), and two preclinical candidates: HCW11-018b (“Big BiTE”, a tetra-valent T-cell engager for solid tumors) and HCW11-040 (a pembrolizumab-based tetra-valent immune checkpoint inhibitor with additional immune-activating features).

The company continues to focus on business development and licensing partnerships to fund its pipeline and maximize value for shareholders.

Forward-Looking Statements

This press release contains forward-looking statements, including expectations regarding clinical trials, financial outcomes, and potential licensing events. Actual results may differ due to risks and uncertainties, including those detailed in HCW Biologics’ SEC filings.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected.

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