HCW Biologics shares jump 10.17% after hours after securing $7M upfront fee from China licensee for HCW11-006 license.

HCW Biologics surged 10.17% in after-hours trading following the announcement of a $7.0 million upfront license fee for its HCW11-006 fusion immunotherapeutic. The payment included $3.5 million in cash and $3.5 million in transferable equity from licensee Trimmune, which plans to initiate a Phase 1 trial in China by mid-2027. The deal grants HCW Biologics a royalty-free option to reclaim rights to the Americas territory post-trial, along with potential milestone payments and double-digit royalties on future sales. Trimmune, backed by major investors like CITIC Medical Fund and TigerMed, assumes all Phase 1 costs, reducing financial risk for HCW Biologics. The transaction highlights strategic value creation through non-dilutive funding and expanded commercialization pathways, driving investor optimism.