HCW Biologics licenses proprietary preclinical molecule to WY Biotech

HCW Biologics (HCWB) and WY Biotech, 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 to develop and commercialize one of HCWB’s product candidates generated with its new drug discovery platform for therapeutic use. Key terms of the agreement include that WY Biotech has agreed to pay HCWB $7.0M in an upfront payment, and HCWB is eligible to receive additional significant development milestone payments and double-digit royalties on future product sales. In addition, HCWB will share a substantial portion of the proceeds from a future transactions involving the molecule, if such a transaction occurs. HCWB also has a payment-free, milestone-free, and royalty-free option to recapture the development and commercialization rights of this molecule for the U.S., Canada, Central America, and South America after the conclusion of the Phase 1 clinical trial. WY Biotech is financially responsible for all costs associated with research and development, manufacturing, clinical development, regulatory approval, and commercialization for the molecule. HCWB will be responsible for costs associated with clinical development, regulatory approval, and commercialization in the Opt-in Territory, if HCWB exercises its opt-in rights.