HCW Biologics Inc. (NASDAQ: HCWB) received the full $7 million upfront license fee from Beijing Trimmune Biotech Co., Ltd. for exclusive worldwide rights to develop and commercialize HCW11-006, a fusion immunotherapy compound.

The payment consists of $3.5 million in cash and $3.5 million in transferable equity in Trimmune, according to a company statement. Trimmune was formed by WY Biotech Co., Ltd. and HCW Biologics to develop HCW11-006. Investors in Trimmune include CITIC Medical Fund and TigerYeah Capital Fund of TigerMed.

Under the licensing agreement, HCW Biologics remains eligible for development milestone payments, double-digit royalties on future product sales, and proceeds from potential future transactions involving the licensed molecule. The company retains a payment-free option to recapture rights for the Americas territory after completion of the Phase 1 clinical trial in China.

Trimmune will fund and conduct the Phase 1 clinical study in China, with initiation expected in the first half of 2027. The deal also provides Trimmune an option to license exclusive regional China rights for HCW9302, HCW Biologics' clinical-stage molecule currently in evaluation for an autoimmune disorder.

HCW Biologics develops immunotherapies for autoimmune diseases, cancer, and senescence-associated dysplasia. The company's lead product candidate HCW9302 is currently being evaluated in a Phase 1 clinical study for alopecia areata, which began in November 2025.