MIRAMAR, Fla., Aug. 12, 2022 (GLOBE NEWSWIRE) -- 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 chronic, low-grade inflammation and age-related diseases, today reported financial results and recent business highlights for its second quarter ended June 30, 2022.
“We have achieved several milestones in the first half of 2022, and some important pieces of our strategic plan have fallen into place. First, we are now a clinical-stage company, with the entry of our lead product candidate, HCW9218, into the clinic in a solid tumor cancer trial. Our pancreatic study is not far behind, and we expect to initiate this clinical trial in the third quarter. Next, we have produced promising data in preclinical studies for our lead product candidate, HCW9302, in the treatment of proinflammatory diseases driven by activated inflammasomes. We used this data as a basis for a pivotal scientific paper for HCW9302 that we expect to be published in a high-impact, peer-reviewed journal by the end of the year,” stated Hing C. Wong, Ph.D., Founder and CEO of the Company.
Dr. Wong continued, “By working with preeminent National Cancer Institute designated Comprehensive Cancer Centers, it appears that we have mitigated some of the risk for maintaining our expected rate of patient enrollment. At our current pace, we expect to be in a position to provide an early human-experience data readout from the clinical trials for HCW9218 by the end of 2022. While it is very early, we are encouraged by how patients are responding to HCW9218.”
Dr. Wong reported, “HCW Biologics has advanced one of our key strategic initiatives – establishing our own domestic manufacturing capability. We have committed to purchase a 36,000 square foot building in Miramar, Florida that will be the new headquarters for our offices, research labs, and manufacturing facility. To buildout our new facilities, our team will leverage their past experience in constructing similar facilities. We expect to complete the project by the end of 2023, and to move into our new facility shortly thereafter. Currently, contract manufacturers are experiencing backlogs of up to two years. With our own manufacturing facility, we believe we will have better control over our supply chain as we advance to later-stage clinical trials requiring additional clinical materials, as well as fulfilling our obligations to our licensee, Wugen.”
Business Highlights:
Second Quarter 2022 Financial Results:
About HCW Biologics:
HCW Biologics is a clinical-stage biopharmaceutical company focused on discovering and developing novel immunotherapies to lengthen healthspan by disrupting the link between chronic, low-grade inflammation, and age-related diseases, such as cancer, cardiovascular diseases, diabetes, neurodegenerative diseases, and autoimmune diseases. The Company has combined deep understanding of disease-related immunology with its expertise in advanced protein engineering to develop the TOBI™ (Tissue factOr-Based fusIon) discovery platform. The Company uses its TOBI™ discovery platform to generate designer, novel multi-functional fusion molecules with immunotherapeutic properties. The invention of HCW Biologics’ two lead molecules, HCW9218 and HCW9302, was made via the TOBI™ discovery platform. The Masonic Cancer Center, University of Minnesota, has initiated a Phase 1 clinical trial to evaluate HCW9218 in solid tumors that have progressed after prior chemotherapies. The FDA has also cleared HCW Biologics to initiate a Phase 1b clinical trial for HCW9218 in patients with advanced pancreatic cancer. HCW9302 is currently undergoing IND-enabling studies for an autoimmune indication.
Forward Looking Statements:
Statements in this press release contain “forward-looking statements” that are subject to substantial risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “expect,” “believe,” “will,” “may,” “should,” “estimate,” “project,” “outlook,” “forecast” or other similar words and include, without limitation, statements regarding the initiation of our pancreatic study; the publication of a scientific paper; our ability and plan to provide an early human data readout; the build out of our new facilities; and our ability to reduce the risk of supply-related delays; the ability of HCW Biologics to protect its intellectual property through issued patents or otherwise; and cash balance and commitment for a term loan facility being sufficient to fund operations through the end of 2023. Forward-looking statements are based on the Company’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Factors that could cause actual results to differ include, but are not limited to, the risks and uncertainties that are described in the section titled “Risk Factors” in the Company’s annual report on Form 10-K filed with the United States Securities and Exchange Commission (the “SEC”) on March 29, 2022 and in other filings filed from time to time with the SEC. Forward-looking statements contained in this press release are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.
Company Contact:
Rebecca Byam
CFO
HCW Biologics Inc.
rebeccabyam@hcwbiologics.com
Condensed Statements of Operations
(Unaudited)
Three Months Ended June 30, | Six months ended June 30, | |||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||
Revenues: | ||||||||||||||||
Revenues | $ | — | $ | 454,000 | $ | — | $ | 3,571,545 | ||||||||
Cost of revenues | — | (287,200 | ) | — | (1,615,276 | ) | ||||||||||
Total revenues | — | 166,800 | — | 1,956,269 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | $ | 1,673,163 | $ | 1,969,882 | $ | 4,002,976 | $ | 3,759,558 | ||||||||
General and administrative | 1,077,830 | 1,707,995 | 2,160,190 | 3,588,597 | ||||||||||||
Total operating expenses | 2,750,993 | 3,677,877 | 6,163,166 | 7,348,155 | ||||||||||||
Loss from operations | (2,750,993 | ) | (3,511,077 | ) | (6,163,166 | ) | (5,391,886 | ) | ||||||||
Interest and other income, net | 631 | 516 | 568,808 | (175,882 | ) | |||||||||||
Net loss | $ | (2,750,362 | ) | $ | (3,510,561 | ) | $ | (5,594,358 | ) | $ | (5,567,768 | ) | ||||
Less: cumulative preferred dividends earned in the period, net of forfeitures | (482,662 | ) | — | (960,020 | ) | — | ||||||||||
Net loss available for distribution to common stockholders | $ | (3,233,024 | ) | $ | (3,510,561 | ) | $ | (6,554,378 | ) | $ | (5,567,768 | ) | ||||
Net loss per share, basic and diluted | $ | (0.66 | ) | $ | (0.10 | ) | $ | (1.34 | ) | $ | (0.16 | ) | ||||
Weighted average shares outstanding, basic and diluted | 4,921,121 | 35,814,482 | 4,880,496 | 35,796,257 | ||||||||||||
HCW Biologics Inc.
Condensed Balance Sheets
December 31, | June 30, | ||||||||
2021 | 2022 | ||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 11,730,677 | $ | 15,420,331 | |||||
Short-term investment | 24,983,520 | 16,993,523 | |||||||
Accounts receivable, net | 133,000 | 346,934 | |||||||
Prepaid expenses | 2,196,557 | 1,397,497 | |||||||
Other current assets | 1,436,616 | 470,021 | |||||||
Total current assets | 40,480,370 | 34,628,306 | |||||||
Investments | 11,522,050 | 11,302,870 | |||||||
Property and equipment, net | 1,119,091 | 913,734 | |||||||
Other assets | 393,318 | 563,512 | |||||||
Total assets | $ | 53,514,829 | $ | 47,408,422 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Liabilities | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 223,664 | $ | 296,207 | |||||
Accrued liabilities and other current liabilities | 2,097,925 | 848,340 | |||||||
Total current liabilities | 2,321,589 | 1,144,547 | |||||||
Other liabilities | — | 98,447 | |||||||
Total liabilities | 2,321,589 | 1,242,994 | |||||||
Commitments and contingencies (Note 7) | |||||||||
Stockholders’ (deficit) equity: | |||||||||
Common stock: | |||||||||
Common, $0.0001 par value; 250,000,000 shares authorized and 35,768,264 shares issued at December 31, 2021; 250,000,000 shares authorized and 35,779,489 shares issued at March 31, 2022 | 3,577 | 3,582 | |||||||
Additional paid-in capital | 81,827,006 | 82,366,957 | |||||||
Accumulated deficit | (30,637,343 | ) | (36,205,111 | ) | |||||
Total stockholders’ (deficit) equity | 51,193,240 | 46,165,428 | |||||||
Total liabilities, redeemable preferred stock and stockholders’ (deficit) equity | $ | 53,514,829 | $ | 47,408,422 | |||||