Hepion Pharmaceuticals Issues Letter to Shareholders Urging Support for Proposed Merger with Pharma Two B
Hepion Pharmaceuticals (HEPA) has issued a letter to shareholders urging support for its proposed merger with Pharma Two B at the upcoming Special Meeting on December 12, 2024. The company's board unanimously recommends the merger after reviewing strategic alternatives, citing financial challenges and inability to fund clinical development. The merger would allow shareholders to participate in Pharma Two B's late-stage Parkinson's Disease treatment, P2B001. If the merger fails to receive shareholder approval, Hepion warns of potential Nasdaq delisting and bankruptcy risks due to financial resources. While Pharma Two B doesn't plan to advance Hepion's drug pipeline, Hepion remains committed to attempting to monetize its assets for shareholder benefit.
Hepion Pharmaceuticals (HEPA) ha inviato una lettera agli azionisti esortando a supportare la sua proposta di fusione con Pharma Two B nell'imminente Assemblea Straordinaria del 12 dicembre 2024. Il consiglio di amministrazione dell'azienda raccomanda all'unanimità la fusione dopo aver esaminato alternative strategiche, citando difficoltà finanziarie e l'incapacità di finanziare lo sviluppo clinico. La fusione consentirebbe agli azionisti di partecipare al trattamento avanzato di Parkinson, P2B001, di Pharma Two B. Se la fusione non dovesse ricevere l'approvazione degli azionisti, Hepion avverte dei potenziali rischi di delisting da Nasdaq e bancarotta a causa delle risorse finanziarie. Sebbene Pharma Two B non preveda di far progredire il portafoglio di farmaci di Hepion, Hepion rimane impegnata a cercare di monetizzare i propri attivi a beneficio degli azionisti.
Hepion Pharmaceuticals (HEPA) ha enviado una carta a los accionistas instándolos a apoyar su propuesta de fusión con Pharma Two B en la próxima Reunión Especial el 12 de diciembre de 2024. La junta directiva de la compañía recomienda unánimemente la fusión tras revisar alternativas estratégicas, citando desafíos financieros y la incapacidad de financiar el desarrollo clínico. La fusión permitiría a los accionistas participar en el tratamiento avanzado de la enfermedad de Parkinson, P2B001, de Pharma Two B. Si la fusión no recibe la aprobación de los accionistas, Hepion advierte sobre posibles riesgos de exclusión de Nasdaq y bancarrota debido a los recursos financieros. Aunque Pharma Two B no planea avanzar el pipeline de medicamentos de Hepion, Hepion sigue comprometida a intentar monetizar sus activos en beneficio de los accionistas.
헤피온 제약(Hepaion Pharmaceuticals, HEPA)은 주주들에게 2024년 12월 12일 예정된 특별 회의에서 파마 투 B(Pharma Two B)와의 합병 제안을 지지해 줄 것을 촉구하는 서한을 발송했습니다. 회사의 이사회는 전략적 대안을 검토한 결과 재정적 어려움과 임상 개발 자금 부족을 이유로 합병을 unanimous하게 추천했습니다. 합병이 이루어지면 주주들은 파마 투 B의 후기 단계 파킨슨 병 치료제 P2B001에 참여할 수 있게 됩니다. 만약 주주들의 승인을 받지 못할 경우, 헤피온은 재정 자원의 부족으로 인해 나스닥에서 상장 폐지되거나 파산할 위험이 있다고 경고했습니다. 파마 투 B는 헤피온의 약물 파이프라인을 발전시킬 계획이 없지만, 헤피온은 주주 이익을 위해 자산을 수익화하려는 노력에 전념하고 있습니다.
Hepion Pharmaceuticals (HEPA) a envoyé une lettre aux actionnaires leur demandant de soutenir sa proposition de fusion avec Pharma Two B lors de la prochaine Assemblée générale extraordinaire du 12 décembre 2024. Le conseil d'administration de la société recommande à l'unanimité la fusion après avoir examiné des alternatives stratégiques, citant des difficultés financières et l'incapacité à financer le développement clinique. La fusion permettrait aux actionnaires de participer au traitement avancé de la maladie de Parkinson, P2B001, de Pharma Two B. Si la fusion ne reçoit pas l'approbation des actionnaires, Hepion met en garde contre les risques potentiels de radiation du Nasdaq et de faillite en raison des ressources financières. Bien que Pharma Two B ne prévoie pas d'avancer la pipeline de médicaments de Hepion, Hepion reste déterminé à essayer de monétiser ses actifs au bénéfice des actionnaires.
Hepion Pharmaceuticals (HEPA) hat einen Brief an die Aktionäre verschickt, in dem sie zur Unterstützung ihres vorgeschlagenen Zusammenschlusses mit Pharma Two B bei der bevorstehenden außerordentlichen Hauptversammlung am 12. Dezember 2024 aufruft. Der Vorstand des Unternehmens empfiehlt einstimmig die Fusion, nachdem er strategische Alternativen überprüft hat, und nennt finanzielle Herausforderungen und ein Versagen, die klinische Entwicklung zu finanzieren. Die Fusion würde es den Aktionären ermöglichen, an der späten Behandlung von Parkinson-Krankheit, P2B001, von Pharma Two B teilzunehmen. Wenn die Fusion keine Zustimmung der Aktionäre erhält, warnt Hepion vor potenziellen Risiken eines Delistings von der Nasdaq und einer möglichen Insolvenz aufgrund finanzieller Ressourcen. Auch wenn Pharma Two B plant, das Medikamentenportfolio von Hepion nicht voranzutreiben, bleibt Hepion entschlossen, daran zu arbeiten, ihre Vermögenswerte zum Nutzen der Aktionäre zu monetarisieren.
- Merger provides shareholders access to Pharma Two B's late-stage Parkinson's Disease treatment P2B001
- Post-merger company expected to be well-funded for clinical trials
- Potential additional value from monetization of Hepion's legacy assets
- Company lacks financial resources to advance clinical trials
- Current drug development efforts have not yielded desired results
- Risk of Nasdaq delisting and bankruptcy if merger fails
- Pharma Two B will not advance Hepion's existing drug pipeline
- No formal interest received in monetizing current assets
Insights
This proposed merger represents a critical survival strategy for Hepion Pharmaceuticals. The company's dire financial situation and inability to fund its drug pipeline development has forced this strategic pivot. The merger with Pharma Two B offers shareholders a lifeline through exposure to a late-stage Parkinson's Disease treatment candidate, P2B001.
The key financial implications are stark: without the merger, HEPA faces potential Nasdaq delisting and bankruptcy. The market's lack of appetite for financing HEPA's current pipeline on acceptable terms has effectively cornered the company into this decision. While shareholders would retain potential upside from any future monetization of HEPA's legacy pipeline, the primary value proposition lies in P2B001's advanced development stage and better-funded clinical pathway.
The transition from HEPA's current pipeline to Pharma Two B's P2B001 represents a shift to a more commercially viable therapeutic candidate. P2B001 for Parkinson's Disease is in late-stage clinical development, significantly de-risking the development pathway compared to HEPA's earlier-stage programs. The Parkinson's Disease market presents a substantial commercial opportunity, with growing patient populations and ongoing demand for innovative treatments.
While Pharma Two B's decision not to advance HEPA's legacy pipeline indicates their assessment of its potential, the focus on a single late-stage asset with clear regulatory pathway and market potential offers better odds of success.
Transaction Creates Opportunity to Share in Potential Upside of Pharma Two B’s Late-Clinical Stage Candidate to Treat Parkinson’s Disease
Hepion’s Board Unanimously Recommends Shareholders Approve the Merger Following Review of Strategic Alternatives – Including Challenges of Remaining a Stand-Alone Company
EDISON, NJ, Dec. 02, 2024 (GLOBE NEWSWIRE) -- Hepion Pharmaceuticals, Inc. (Nasdaq: HEPA) (“Hepion” or the “Company”), today sent an open letter to shareholders urging them to vote for Hepion’s proposed merger with Pharma Two B Ltd. (“Pharma Two B”) at the Company’s upcoming Special Meeting of Stockholders (the “Special Meeting”) on December 12, 2024.
The full text of the letter is below:
December 2, 2024
Dear Shareholders of Hepion Pharmaceuticals,
We are writing to encourage your support for Hepion’s proposed merger with Pharma Two B, which, we believe, best positions the Company’s shareholders to maximize the value of their investment. Since the Company’s formation over a decade ago, Hepion has worked on developing new drugs aimed at addressing critical diseases with the goal of improving the lives of a significant patient population. Regrettably, these efforts have not yielded the desired results and, after conducting a thorough review of strategic alternatives, Hepion’s board of directors concluded a merger with Pharma Two B is in the best interests of all shareholders. We therefore urge you to VOTE FOR this transformational transaction.
As outlined in Hepion’s definitive proxy statement dated November 8, 2024 (see link: Hepion Proxy Statement 2024 Special Meeting), the continued clinical development of the Company’s drug pipeline has become increasingly challenging due to numerous risk factors- including Hepion’s inability to continue funding such development and the investment community’s waning appetite for follow-on financing given the deteriorating risk profile. Quite simply, the Company lacked the financial resources to advance its clinical trials and the capital markets reflected no interest in funding further development of Hepion’s pipeline on acceptable terms.
Fortunately, the Company’s review of strategic alternatives yielded a compelling opportunity to merge with Pharma Two B, a late-clinical stage biotechnology company developing an innovative treatment for Parkinson’s Disease. Upon consummation of the proposed merger, Hepion’s shareholders will be able to participate in the potential upside of Pharma Two B’s promising product candidate known as P2B001.
Furthermore, while Pharma Two B has indicated it has no plans to advance the clinical development of Hepion’s legacy drug pipeline, Hepion remains committed to monetizing its value for the benefit of all shareholders. Although its efforts to date have not yielded any formal indications of interest, any such monetization could potentially provide further upside beyond Pharma Two B’s compelling prospects. Of course, there can be no guaranty of the magnitude and timing of any potential sale, if at all.
In the event Hepion’s proposed merger with Pharma Two B does not receive the required shareholder support, the Company faces potentially dire consequences due to its limited financial resources. A stand-alone Hepion would be unable to fund the continued development of its legacy drug pipeline and would likely face delisting of its common stock from Nasdaq and potential bankruptcy. Any adjournment to solicit additional shareholder support could erode precious financial resources.
Clearly, there is a better path forward for Hepion’s shareholders. Pharma Two B presents an opportunity to share in the potential upside of its innovative drug candidate to treat Parkinson’s Disease. P2B001’s development is already more advanced than any candidates in Hepion’s legacy pipeline and the post-merger company is expected to be well-funded to advance continued clinical trials with filing of a New Drug Application with the FDA on the horizon.
We therefore strongly urge you to VOTE FOR Hepion’s proposed merger with Pharma Two B. Please vote today to approve this important transaction. EVERY VOTE COUNTS! No matter how many shares you may own, the outcome of the special meeting may have a material impact on the value of your investment.
If you have any questions regarding the Special Meeting or need assistance voting, please contact Hepion’s proxy solicitation firm Campaign Management, LLC toll-free at 1-855-422-1042 or via email at info@campaign-mgmt.com If you have already voted for Hepion’s proposed merger with Pharma Two B, thank you for your support. If you have previously cast your vote against the merger, you can still change your vote at any time prior to the Special Meeting as only your latest dated vote will count.
Sincerely,
Hepion Pharmaceuticals, Inc.
Contacts
Investors:
Michael Fein
Campaign Management
(212) 632-8422
michael.fein@campaign-mgmt.com
FAQ
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