HCW Biologics Inc (NASDAQ:HCWB) shares are trading higher during the premarket on Monday with strong session volume of 10.03M versus average volume of 48.02K, according to data from Benzinga Pro.
HCW Biologics and WY Biotech Co., Ltd., a China-based company specializing in the early development of recombinant protein medicines and gene/cell therapies, has entered into a global exclusive licensing agreement.
The agreement covers the development and commercialization of one of HCW Biologics’ product candidates generated from its novel drug discovery platform for therapeutic use.
WY Biotech has agreed to pay HCW Biologics $7.0 million upfront. HCW Biologics is eligible for additional key development milestone payments and double-digit royalties on future product sales.
In addition, HCW Biologics will share a substantial portion of the proceeds from future transactions involving the molecule, if such a transaction occurs.
HCW Biologics also has a payment-free, milestone-free and royalty-free option to regain the development and commercialization rights of this molecule for the United States, Canada, Central America and South America (Opt-in Territory) upon closing. of the phase 1 clinical trial.
WY Biotech is financially responsible for all costs associated with the research and development, manufacturing, clinical development, regulatory approval and commercialization of the molecule.
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 area.
On September 30, 2024, the company said there are significant doubts about its ability to continue as a going concern for at least twelve months without additional financing or financial support.
The company launched a multi-faceted financing plan in the third quarter of 2024 to raise the necessary capital through equity financings and business development transactions to finance future product development and operations.
Price promotion: HCWB shares are up 237% to $0.99 during the premarket session at last check Monday.
Photo via Shutterstock
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This article Why is Penny Stock HCW Biologics Rising on Monday? originally appeared on Benzinga.com
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