HCW Biologics Inc (NASDAQ:HCWB) stock is trading higher during Monday premarket with a strong session volume of 10.03 million versus an average volume of 48.02K, as per data from Benzinga Pro.
HCW Biologics and WY Biotech Co., Ltd., a China-based company specializing in the early-stage development of recombinant protein drugs and gene/cell therapies, have entered into a worldwide exclusive license agreement.
The agreement covers the development and commercialization of one of HCW Biologics’ product candidates generated with its new drug discovery platform for therapeutic use.
WY Biotech has agreed to pay HCW Biologics $7.0 million upfront. HCW Biologics is eligible to receive additional significant development milestone payments and double-digit royalties on future product sales.
In addition, HCW Biologics will share a substantial portion of the proceeds from a future transaction(s) involving the molecule if such a transaction occurs.
HCW Biologics also has a payment-free, milestone-free, and royalty-free option to recapture the development and commercialization rights of this molecule for the United States, Canada, Central America, and South America (Opt-in Territory) after the conclusion of the Phase 1 clinical trial.
WY Biotech is financially responsible for all costs associated with the molecule’s research and development, manufacturing, clinical development, regulatory approval, and commercialization.
If HCW Biologic exercises its opt-in rights, it will be responsible for costs associated with clinical development, regulatory approval, and commercialization in the Opt-in Territory.
As of September 30, 2024, the company said that substantial doubt exists regarding its ability to continue as a going concern for at least 12 months without additional funding or financial support.
The company launched a multi-faceted financing plan in the third quarter of 2024 to raise the capital required through equity financings and business development transactions to fund future product development and operations.
Price Action: HCWB stock is up 237% at $0.99 during the premarket session at last check Monday.
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This article Why Is Penny Stock HCW Biologics Surging On Monday? originally appeared on Benzinga.com
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