HCW Biologics Surges 122% After-Hours on Surprise Profit and Licensing Deal
Benzinga reported Thursday night that HCW Biologics after-hours trading saw the Florida-based clinical-stage biotech’s shares more than double. HCWB climbed roughly 123% to $0.75 following the company’s first-quarter earnings release. The stock had closed the regular session at $0.34.
A Licensing Deal Changes Everything
The dramatic reversal in quarterly fortunes traces almost entirely to one transaction. In March, HCW Biologics closed an exclusive worldwide licensing agreement with Beijing Trimmune Biotech covering HCW11-006, a multi-functional fusion immunotherapy candidate targeting solid tumors. The asset works by activating CD8+ T cells and NK cells in the immune system.
The deal delivered $3.5 million in upfront cash and an additional $3.5 million in the form of a transferable minority equity stake in Trimmune. That influx lifted quarterly revenue to $6.5 million, compared with roughly $5,000 in the same period a year earlier.
Profit Swing Stuns the Street
The revenue reversal fed directly into the bottom line. HCW Biologics swung to a net profit of $3.5 million from a loss of $2.2 million in the first quarter of 2025. Earnings per share landed at $0.37, obliterating the consensus analyst estimate of negative $0.44. That beat represents a swing of roughly 184% versus expectations.
Cost discipline added to the improvement. Research and development spending fell approximately 15% year over year. General and administrative costs dropped around 18%, signaling tighter operational controls across the business.
Background: A Company Under Pressure
The earnings pop arrives against a difficult backdrop for HCWB shareholders. Over the prior 12 months the stock had fallen roughly 96%, touching a 52-week low of $0.25 against a high of $10.50. The company carries a market capitalization of just $2.27 million.
As of March 31, management flagged going-concern doubt, noting uncertainty about funding operations beyond 12 months. Separately, Nasdaq staff issued a delisting determination tied to the stock’s failure to maintain the $1.00 minimum bid price. On May 5, the company was granted a hearing to appeal that decision.
Pipeline Milestone on the Horizon
Beyond the licensing windfall, attention is turning to the company’s lead autoimmune program. HCW9302 is a first-in-class interleukin-2 fusion protein being developed for alopecia areata. No dose-limiting toxicities have been reported in early testing. Preliminary Phase 1 data from the first two dose cohorts is expected before the end of June, with a full data readout targeted for the fourth quarter of 2026. CEO Dr. Hing C. Wong noted the molecule shows strong receptor affinity, durable serum exposure, and favorable activity at low doses in preclinical primate studies.
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