MIRAMAR, Fla., May 15, 2026, 19:09 EDT
HCW Biologics Inc. shares jumped more than threefold Friday. The clinical-stage biotech posted a first-quarter profit, reversing a year-earlier loss, as results got a boost from a licensing payment from Beijing Trimmune Biotech. The gain came from licensing, not product revenue.
HCW’s move is key as the company tries to hold onto its Nasdaq listing and keep its early drug programs afloat on limited cash. HCW hasn’t launched a commercial drug business. Its most recent filing kept a going-concern warning, the accounting signal that questions whether the company can fund itself for the next year.
HCW posted Q1 revenue of $6.54 million and net income of $3.47 million, up from $5,065 in revenue and a $2.2 million loss in the same period last year. The results include $6.5 million in revenue recognized from the March closing of an exclusive global license agreement for HCW11-006 with Beijing Trimmune Biotech. That payment came in cash and an equity stake in Trimmune.
HCW Biologics shares closed at $1.22, up 262% on the day, but slipped to $1.01 after hours, according to MarketBeat. That move took HCW back over the $1 threshold Friday, though its Nasdaq listing problem remains.
HCW Biologics, Inc. is set to make its case at a Nasdaq panel on May 5, seeking to overturn a staff decision to delist its stock over the $1 minimum bid price rule, according to a filing. The biotech has also asked shareholders to approve a reverse split of between one-for-five and one-for-twenty at its June 15 annual meeting.
Another clinical marker is coming up. HCW says it’s still on pace to release early data from the first two dose groups of its Phase 1 trial for HCW9302 in alopecia areata in the first half of 2026. Phase 1 studies test safety in people. Alopecia areata is an autoimmune disease where the immune system targets hair follicles.
Dr. Hing C. Wong, founder and chief executive of HCW, said HCW9302 has “a strong profile for the treatment of autoimmune disorders.” He pointed to preclinical data showing the drug stayed in the body longer and was active at low doses. GlobeNewswire
The field isn’t blank. U.S. patients can already get approved oral JAK inhibitors, drugs that block inflammation signals, with options like Eli Lilly’s Olumiant, Pfizer’s Litfulo, and Sun Pharma’s Leqselvi, the National Alopecia Areata Foundation says. Nuvama Institutional Equities’ Shrikant Akolkar told Reuters last year Leqselvi could reach as much as $400 million in sales by fiscal 2030, pointing to strong demand in severe alopecia.
HCW said Thursday its pembrolizumab-based fusion immunotherapy, HCW11-040, prevented bronchopulmonary dysplasia in an animal model. The data comes from studies aimed at backing an Investigational New Drug application, which is required before starting human trials. The company said it plans to finish those enabling studies in the second half of 2027.
Wong said the company will “vigorously pursue” work on HCW11-040 for that use. According to HCW, bronchopulmonary dysplasia affects 10,000 to 15,000 premature infants in the U.S. each year and currently has no cure. HCW Biologics, Inc.
The balance sheet still looks tough. HCW reported $1.23 million in cash as of March 31, but current liabilities were $19.96 million, with short-term debt at $6.58 million. The company has run up $102.3 million in net losses since it started and hasn’t reported any commercial product sales from its own immunotherapies.
HCW faces short-term payment issues as well. The company got an extension until May 26 to pay the last $620,000 of its settlement with contract manufacturer EirGenix, according to the filing. It also still owes $750,000 on a settlement for Cooley legal fees, due by Aug. 31 unless it secures at least $4 million in financing before then.
Armistice Capital and Steven Boyd had shared voting and dispositive power over 353,680 shares of HCW, or 4.99% of the class, at March 31, a separate filing Friday showed.
HCW has been traded mostly as a recovery play so far, after a one-off profit driven by a license deal. The real challenge for the company is turning that boost into new capital, more progress in the clinic, and uninterrupted Nasdaq listing ahead of coming deadlines.
