Hepion Pharmaceuticals Reports $6.1 Million Net Loss and Strategic Developments in Q1 2025

Hepion Pharmaceuticals, Inc. reported a net loss of $6.1 million for the three months ended March 31, 2025, compared to a net loss of $2.9 million for the same period in 2024. The company did not generate any revenue during this period, consistent with its ongoing focus on research and development rather than commercial sales. Total operating expenses decreased significantly to $1.3 million from $5.2 million year-over-year, primarily due to reduced research and development costs, which fell from $2.5 million to $22,235, and a decrease in general and administrative expenses from $2.6 million to $1.3 million.

The financial position of Hepion has improved markedly, with total current assets rising to $6.3 million as of March 31, 2025, up from $1.6 million at the end of 2024. This increase was largely driven by a successful public offering in January 2025, which raised approximately $9 million in gross proceeds. The company used part of these proceeds to repay a $2.9 million note payable. As a result, total liabilities decreased to $2.4 million from $3.5 million at the end of the previous fiscal year.

In terms of strategic developments, Hepion entered into a license agreement with New Day Diagnostics on May 9, 2025, to in-license diagnostic tests for various diseases, including celiac disease and hepatocellular carcinoma. This agreement includes an upfront payment of $525,000 in cash and $200,000 in common stock, along with potential milestone payments totaling up to $17.15 million. The tests have CE marks and are eligible for sale in Europe, marking a significant step in Hepion's expansion into diagnostic markets.

Operationally, the company has undergone significant changes, including a reverse stock split on March 17, 2025, at a ratio of one-for-fifty, aimed at increasing the per-share price of its common stock. As of March 31, 2025, Hepion had approximately 9.6 million shares of common stock outstanding, a reduction from 139,168 shares prior to the split. The company’s cash position improved to $4.6 million, up from $406,408 at the end of 2024, providing a more stable foundation for future operations.

Looking ahead, Hepion acknowledges the need for additional capital to continue its operations and fund its strategic initiatives. The company has expressed uncertainty regarding its ability to secure necessary funding, which could impact its operational plans. The management has indicated that it will continue to seek financing options while focusing on the development of its product candidates and potential collaborations to enhance its market position.