By Colin Kellaher
Hepion Pharmaceuticals, a clinical-stage biopharmaceutical company, is taking significant steps to reduce operating costs by approximately 60% in an effort to preserve capital while exploring strategic and financing alternatives. The company aims to maximize shareholder value by implementing these measures.
Change in Leadership
Robert Foster, the Chief Executive and a board member of Hepion Pharmaceuticals, has resigned from his position for personal reasons. Consequently, John Cavan, the Chief Financial Officer of the company, will serve as the interim CEO during this transitional period.
Exploring Strategic and Financing Options
Hepion Pharmaceuticals is considering various options as part of its strategic plan. These options may include but are not limited to an acquisition, merger, reverse merger, or sale of assets. The company is actively seeking opportunities that will further its mission and enhance shareholder value.
Advancing Clinical Research
Hepion Pharmaceuticals is currently conducting a Phase 2b study of its lead drug candidate, rencofilstat, in patients with nonalcoholic steatohepatitis (NASH), a chronic liver condition. The study includes 131 patients, and the company aims to complete their treatment as planned. Once the trial is fully funded or a strategic transaction is finalized, Hepion Pharmaceuticals intends to enroll additional patients into the study.
Financial Outlook
By implementing these cost-cutting measures and exploring strategic options, Hepion Pharmaceuticals expects to extend its cash runway until the second quarter of 2025. This will provide the company with enhanced financial stability and flexibility moving forward.
Trading in shares of Hepion Pharmaceuticals was halted premarket on Thursday.
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