HCW Biologics Inc. (NASDAQ: HCWB) closed a first‑round financing of $7 million on February 13 2026 through a newly formed joint venture, Beijing Trimmune Biotech Co., Ltd. The deal provides the company with an upfront cash license fee of $3.5 million and a minority co‑founder equity stake in Trimmune valued at roughly $3.5 million, giving HCW Biologics a direct financial stake in the venture that will develop its lead candidate HCW11‑006.
Trimmune holds exclusive worldwide rights for in‑vivo applications of HCW11‑006 and will assume all costs associated with research, development, manufacturing, clinical trials, regulatory approval and commercialization in its territory. Trimmune paid half of the upfront fee ($1.75 million) on the closing date, with the remaining balance due by March 6 2026. HCW Biologics will receive milestone payments, double‑digit royalties on future sales, and a share of proceeds from any future transaction involving the licensed molecule. The agreement also grants HCW Biologics a royalty‑free option to reclaim development and commercialization rights for the Americas after the Phase 1 trial in China, and gives Trimmune an option to obtain exclusive Greater China rights to HCW9302.
The financing is strategically significant for HCW Biologics, which has faced substantial revenue declines and a going‑concern warning in recent financial statements. By offloading the development costs of HCW11‑006 to Trimmune, the company preserves cash and mitigates short‑term financial pressure while retaining upside through milestone and royalty streams. The deal also helps HCW Biologics meet Nasdaq listing requirements, as the infusion of capital and partnership structure strengthen its financial footing.
HCW11‑006 is slated to enter a Phase 1 clinical trial in China during the first half of 2027, a milestone that could accelerate the molecule’s path to market. The joint venture’s option to secure Greater China rights to HCW9302 expands the partnership’s scope beyond the lead candidate, positioning Trimmune to pursue additional assets in the region. The combination of immediate funding, shared development risk, and retained strategic options underscores the deal’s importance to HCW Biologics’ pipeline progression.
Dr. Hing C. Wong, Founder and CEO of HCW Biologics, said, "We are excited that WY Biotech and HCW Biologics have successfully established an entity to laser focus on the development and commercialization of HCW11‑006." He added, "HCW Biologics' strategic focus has been establishing commercialization partnerships for its novel protein and antibody therapies with innovative leaders in the immunotherapy field." These comments highlight the company’s intent to leverage external expertise while maintaining a stake in future commercial success.
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