Hepion Pharmaceuticals to be delisted from Nasdaq

MORRISTOWN, N.J. - Hepion Pharmaceuticals, Inc. (NASDAQ:HEPA), a biopharmaceutical company formerly focused on liver disease treatments, is set to be delisted from the Nasdaq Stock Market following a notification of noncompliance with listing standards. The company received a written notice on Monday from Nasdaq’s Office of General Counsel indicating that its shares will be suspended from trading at market open on Tuesday, May 13, 2025. The micro-cap company, currently valued at just $3.49 million, has shown concerning financial metrics, with InvestingPro data indicating a weak financial health score of 1.28 and a concerning current ratio of 0.51.

The delisting is due to Hepion’s failure to meet the minimum bid price requirement of $1.00 per share, as stipulated in Nasdaq Listing Rule 5550(a)(2). Additionally, Nasdaq has expressed concerns under Listing Rule 5101, considering the company to be a public shell. Following the suspension, Hepion anticipates that its common stock will trade on the OTC Markets Group under the same ticker symbol, HEPA. InvestingPro analysis reveals 15 additional key insights about the company’s financial situation, including critical metrics about its cash burn rate and profitability outlook.

This development comes after Hepion shifted its focus from drug development to becoming a developer and distributor of diagnostic tests. The company has recently entered into a licensing agreement with New Day Diagnostics LLC for tests related to celiac disease, respiratory illnesses including Covid and Influenza A/B and RSV, H. pylori, and HCC. These tests are currently marked for sale in Europe.

Hepion’s primary asset, Rencofilstat, a cyclophilin inhibitor, showed promise in reducing liver fibrosis and hepatocellular carcinoma in experimental models. However, the company’s ASCEND-NASH clinical trial for this asset was wound down in April 2024 after enrollment was paused with 151 of the planned 336 subjects randomized.

The information reported here is based on a press release statement from Hepion Pharmaceuticals. The company has faced substantial competition and other risks, including the need for additional financing and the uncertainties of patent protection and litigation. The stock’s performance reflects these challenges, with a dramatic year-to-date decline of 98.33% and currently trading at $0.32. Hepion has not provided an update on its plans following the delisting, and investors are encouraged to consider the risk factors detailed in the company’s recent SEC filings.

In other recent news, Hepion Pharmaceuticals has entered into a licensing agreement with New Day Diagnostics LLC to expand its product portfolio into diagnostic tests for diseases like celiac disease and hepatocellular carcinoma. The licensed tests, which are eligible for sale in Europe, target a combined market projected to exceed $15 billion. Additionally, Hepion Pharmaceuticals has announced a one-for-fifty reverse stock split of its common stock, aimed at increasing the stock price to comply with NASDAQ’s minimum bid price rule. This move was approved by the company’s board and stockholders, and trading continued on the NASDAQ Capital Market under a new CUSIP number. Furthermore, Hepion Pharmaceuticals received a notice from the NASDAQ Stock Market regarding its common stock not meeting the minimum bid price requirement, risking potential delisting unless an appeal is made by March 25, 2025. The company intends to appeal the decision, but there is no assurance of success. Lastly, Hepion Pharmaceuticals released an unaudited consolidated balance sheet as of January 31, 2025, providing investors with an updated snapshot of its financial position. This document was part of a routine SEC filing and did not indicate any significant changes in the company’s financial health.

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