HCW Biologics reported third‑quarter 2025 revenue of $15,606, a steep drop from $426,423 in the same period a year earlier and a 2.4‑fold increase from the $6,550 earned in Q2 2025. The company posted a net loss of $4.6 million, up from a $3.9 million loss in Q3 2024, while research and development expenses rose to $1.4 million and general and administrative costs climbed to $1.9 million. Cash and cash equivalents stood at $2.4 million as of June 30, 2025, and management acknowledged substantial doubt about the company’s ability to continue as a going concern for at least 12 months without additional funding.
The revenue collapse is almost entirely attributable to the one‑year suspension of the Wugen License Agreement, which had previously supplied the company’s sole revenue stream. With that source halted, the company’s top line fell dramatically, while the modest increase from Q2 to Q3 reflects only a temporary uptick in internal sales and the absence of the Wugen contribution. The year‑over‑year decline underscores the company’s heavy reliance on a single partnership and the fragility of its business model.
Expense increases were driven by targeted investments in the company’s clinical pipeline. R&D spending rose as HCW Biologics manufactured a high‑expressing line of HCW9101, a critical component for the production of its lead autoimmune candidate, HCW9302. General and administrative costs grew due to higher salaries and benefits, audit and tax advisory fees, and additional expenditures required to maintain compliance with SEC and Nasdaq listing rules. These costs reflect the company’s strategy to accelerate clinical development while meeting regulatory obligations.
Liquidity remains a pressing concern. With only $2.4 million in cash, the company faces a 12‑month going‑concern warning and a Nasdaq delisting deadline that has been extended to December 31, 2025. Legal expenses for the quarter totaled $6,006, and the company is negotiating a payment plan for $12.1 million in unpaid legal fees, further straining its limited resources.
Looking forward, HCW Biologics plans to dose the first patient in a Phase 1 trial of HCW9302 in Q4 2025, a milestone that could validate the candidate’s safety and efficacy. The company also expects a $7.0 million upfront license fee from WY Biotech, which is due by September 30, 2025, but the fee has not yet been received, indicating ongoing negotiations. Management emphasized the need for additional funding to sustain operations and achieve regulatory milestones.
"Our focus remains on advancing HCW9302 through the early clinical stages while managing costs and securing the necessary capital to support our pipeline," said Dr. Hing C. Wong, Founder and CEO. The statement highlights the company’s dual priorities of clinical progress and financial resilience amid a challenging funding environment.
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