HCW Biologics Reports Second Quarter 2024 Financial Results and Business Highlights
HCW Biologics Inc. (the “Company” or “HCW Biologics”) (NASDAQ: HCWB), a clinical-stage biopharmaceutical company focused on discovering and developing novel immunotherapies to lengthen healthspan by disrupting the link between inflammation and age-related diseases, recently reported financial results and recent business highlights for its second quarter.
Key Milestones Achieved
Dr. Hing C. Wong, Founder and CEO of HCW Biologics, shared that the company has recently achieved a significant milestone. They successfully reached a settlement agreement regarding an arbitration that had been a major obstacle to their growth for approximately two years. Following this, HCW Biologics has quickly launched a multi-faceted financing plan, which includes a notable equity offering alongside an enhanced out-licensing initiative. Moving forward, the Company is optimistic about its future prospects with the TOBI™ platform and a robust portfolio of TOBI™-based molecules. The company aims to delve into next-generation immunotherapeutics informed by human data from initial phases of their clinical trials. A critical focus continues to be on the treatment of senescence-associated disorders, particularly those prevalent in age-related diseases, including cancer.
Recent Developments
Several important business highlights were noted, including:
On a recent date, the Company entered into a confidential Settlement Agreement to resolve the arbitration initiated against it and Dr. Hing C. Wong, involving mutual releases among the parties involved. Notably, no monetary damages were paid as part of this settlement.
The Company retains full ownership and control over the TOBI™ platform and the related molecules without restrictions concerning their utilization for non-oncology indications. Moreover, HCW Biologics plans to pursue clinical developments for HCW9302, HCW9206, and HCW9201 concerning cancer indications.
A revamped financing strategy has commenced, including an equity offering expected to close before the end of the current year, complemented by prospective discussions with potential licensing partners for out-licensing non-core assets.
Financial Summary for Second Quarter 2024
For the second quarter ended June 30, 2024, the Company reported the following:
- Revenues: Revenues for the quarter reached $618,854, reflecting a minor decrease from the $622,807 reported for the same period in the previous year. For the first six months, total revenues were approximately $1.7 million, compared to $664,690 in the previous year.
- Research and Development Expenses: Research and Development (R&D) expenses increased to $2.0 million in Q2 2024 compared to $1.6 million in the same quarter of 2023. For the first half of 2024, R&D expenses were $4.2 million, up from $3.9 million in the previous year.
- General and Administrative Expenses: G&A expenses remained flat at $1.6 million during Q2 2024 compared to the previous year, attributed to cost-cutting measures.
- Legal Expenses: Legal expenses surged to $10.4 million in Q2 2024, significantly higher than the $1.4 million spent in the same quarter of the previous year. The rise in expenses is linked to the Altor/NantCell matter.
- Net Loss: The Company experienced a net loss of $15.3 million for Q2 2024, compared to $4.3 million in the same quarter of 2023.
Financial Outlook
HCW Biologics has accumulated $8.0 million in funding in 2024, consisting of a private placement of common stock alongside the issuance of Secured Notes. The Company is authorized to raise up to $10 million in additional Secured Notes, with an aim for full subscriptions.
As of June 30, 2024, substantial doubt exists about the Company's capability to continue as a going concern without additional financing or support.
Company Overview
HCW Biologics is committed to discovering and developing innovative immunotherapies intended to extend healthspan by targeting chronic, low-grade inflammation related to various age-associated diseases, including cancer, cardiovascular ailments, and autoimmune diseases. The Company's proprietary TOBI™ platform is a cornerstone of their research and product development strategy.
HCW Biologics is enthused about the future of its clinical trials and product pipeline, with plans to initiate the clinical evaluation of HCW9302, aimed at treating autoimmune diseases by expanding regulatory T cells.
Company Contact
Rebecca Byam
CFO
HCW Biologics Inc.
rebeccabyam@hcwbiologics.com
Frequently Asked Questions
What is HCW Biologics focused on?
HCW Biologics is dedicated to discovering and developing novel immunotherapies targeting inflammation and age-related diseases.
What recent financial results were announced?
For Q2 2024, HCW Biologics reported revenues of $618,854 and a net loss of $15.3 million.
What significant milestones has HCW Biologics achieved recently?
The Company successfully settled a long-standing arbitration and launched a new equity offering and out-licensing program.
What are the projections for HCW Biologics' financing?
The Company plans to raise up to $10 million in Secured Notes and pursue additional financing options going forward.
Who can be contacted for more information regarding HCW Biologics?
For inquiries, reach out to Rebecca Byam, CFO at HCW Biologics Inc.
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