HCW Biologics Secures $7 Million for Trimmune Venture with WY Biotech; China Phase 1 Slated for 2027

HCW Biologics has closed a financing package tied to its joint venture with WY Biotech, aimed at advancing the preclinical cancer immunotherapy candidate HCW11-006. The deal totals roughly $7 million in value, combining cash payments with an equity stake in the new venture, and is designed to push development forward without immediately drawing down additional capital from HCW’s own balance sheet.

• Total value: approximately $7 million, comprising cash and equity
• Cash component: $3.5 million upfront in licensing proceeds, with the first tranche released today
• Strategic option: HCW may reclaim the Americas rights for free after Phase 1
• Timeline: Phase 1 in China expected to commence in the first half of 2027

Deal mechanics and structure

The financing is built around two principal elements. HCW Biologics will receive a total cash payment of $3.5 million. The first installment of $1.75 million has already been disbursed, with the remaining $1.75 million to be recorded by March 6, 2026.

Concurrently, HCW will assume a minority founder stake in Trimmune, valued at approximately $3.5 million. Beyond these immediate components, the agreement also contemplates milestone payments for future development milestones and double-digit royalty rates on later-stage product sales.

Outsourcing development risk to the joint venture

The Trimmune venture is backed by two investors, CITIC Medical Fund and TigerYeah Capital Fund, which will shoulder the global development costs for the immunotherapy asset. This raises the question of whether HCW Biologics can effectively transfer early-clinical risk to its partner.

Indeed, the deal framework is designed to enable external funding of the early, cost-intensive research phase, before deciding on additional investments in HCW’s core markets in the United States. A contractual clause allows HCW to reclaim the rights to market HCW11-006 in North, Central and South America at no cost once Phase 1 is completed in China. If invoked, the partners would then finance further development in their respective regions.

With the focus squarely on preparing the clinical program, Trimmune plans to launch Phase 1 in China in the first half of 2027. In addition, the joint venture holds an option to acquire the license for HCW9302, a molecule already in clinical trials for autoimmune diseases.

Additional notes

• The two-investor backing structure—CITIC Medical Fund and TigerYeah Capital Fund—matches the arrangement to finance the global development pathway for the therapy, while enabling HCW Biologics to manage risk and capital allocation more flexibly.
• The strategic rights transfer option adds a potential reallocation of development responsibilities across regions, depending on the Phase 1 outcome in China.

Overall, the funding package provides HCW Biologics with a clear path to advancing HCW11-006 through early clinical testing while aligning with partner-driven funding and regional development plans. The anticipated Phase 1 initiation in China during H1 2027 marks a pivotal milestone for the Trimmune collaboration, as does the potential pursuit of HCW9302 in parallel.