HCW Biologics Inc. regained compliance with Nasdaq Listing Rule 5550(a)(2), the Bid Price Rule, on June 29, 2026, following a decision by the Nasdaq Hearings Panel. To ensure long-term adherence to the rule, the company executed a 1-for-6 reverse stock split effective June 30, 2026. The company is subject to a mandatory monitoring period through June 17, 2027.

Reverse Split and Trading Details

The reverse stock split reduced the number of issued and outstanding shares from 9,581,079 to approximately 1,596,849. The company’s common stock began trading on a reverse split-adjusted basis on The Nasdaq Capital Market under the symbol "HCWB." The total authorized shares remain at 250,000,000, and the par value stays at $0.0001 per share. Equiniti Trust Company LLC serves as the exchange agent.

Compliance Timeline

The Nasdaq Hearings Panel had previously ruled on May 29, 2026, requiring the stock to trade above $1.00 per share for at least 20 days prior to July 29, 2026. HCW Biologics met this threshold on June 12, 2026. The company filed amendments to its Certificate of Incorporation with the Delaware Secretary of State on June 24, 2026, to effect the split. The new CUSIP number for the common stock is 40423R303.

Shareholder Impact

The reverse stock split affects all stockholders uniformly without altering percentage ownership interests, except for fractional shares. No fractional shares will be issued; stockholders otherwise entitled to a fraction will receive one whole share. Shares available for issuance under equity incentive plans and those issuable upon the exercise of outstanding stock options and warrants will be proportionately adjusted. Exercise prices for outstanding options and warrants will also be modified.

HCW Biologics Inc. announced positive preliminary human data readouts from the first two dose cohorts of its dose-escalating Phase 1 clinical trial evaluating HCW9302 monotherapy in patients with alopecia areata. The data indicated that all participants in the second dose cohort showed a positive clinical response after a single dose administration, with no dose-limiting toxicities or significant adverse effects reported. The company is progressing through dose escalation in this clinical study, aiming to establish the recommended Phase 2 dose by the end of 2026.

In the second dose cohort, all three participants who received a single subcutaneous dose of three micrograms/kg body weight showed preliminary indications of improvement in Severity of Alopecia Tool (SALT) scores. These participants, all with mild alopecia, demonstrated a ≥25% reduction in SALT scores compared to baseline at four and/or nine weeks after dosing. Treatment of patients in the third dose cohort, set at eight micrograms/kg body weight, is currently underway.

The safety profile of HCW9302 was well tolerated across the first and second dose cohorts, which received one microgram/kg and three micrograms/kg respectively. There were no reported incidences of capillary leak or cytokine release syndromes associated with high dose intravenous IL-2 therapy. Additionally, the treatment did not increase blood eosinophil counts. All reported treatment emergent adverse events were mild, self-limiting, and resolved without medical intervention, with the most common side effect being a temporary injection-site reaction.

Mechanism of Action and Future Plans

Dr. Hing C. Wong, the Company's Founder and Chief Executive Officer, stated that the results are consistent with pre-clinical studies demonstrating HCW9302 exhibits a strong IL-2 receptor α bias. This mechanism preferentially expands and stimulates regulatory T cells to reduce pro-inflammatory and autoimmune responses. HCW9302 is comprised of all human-derived components and can be produced with a cost-effective, streamlined process similar to therapeutic monoclonal antibodies.

HCW Biologics projects to establish the recommended Phase 2 dose by year-end 2026. Patient enrollment remains on track, and the company has initiated dosing patients in the third dose escalation cohort. Upon establishing the recommended Phase 2 dose, the company plans to consider expanding clinical studies to evaluate multi-dose HCW9302 monotherapy in patients with alopecia areata, as well as other conditions such as vitiligo, atopic dermatitis, and Amyotrophic Lateral Sclerosis.

Trial Details

The Phase 1 multi-center dose-escalation study (Clinicaltrials.gov: NCT07049328) is designed to treat up to 30 patients with alopecia areata. The primary objectives are to evaluate the safety of HCW9302 and determine the recommended dose level for later phase clinical studies. Secondary objectives include assessing disease responses and the effects on immune cell proliferation and function. Active clinical sites enrolling patients include The Ohio State University Wexner Medical Center and the James A. Haley Veterans' Hospital.