Hepion Pharmaceuticals Reports Improved Q2 2025 Net Loss of $1.04 Million

Hepion Pharmaceuticals, Inc. reported its financial results for the second quarter of 2025, revealing a net loss of $1.04 million for the three months ended June 30, 2025, a significant improvement compared to a net loss of $3.93 million during the same period in 2024. The company has not generated any revenue in either quarter, as it continues to focus on research and development without commercial products available for sale. For the six months ended June 30, 2025, the net loss was $7.15 million, slightly higher than the $6.78 million loss reported for the same period in 2024.

Total operating expenses for the second quarter of 2025 were $1.75 million, down from $8.50 million in the prior year, primarily due to a reduction in research and development costs, which fell from $7.14 million to $0.42 million. This decrease was attributed to the winding down of clinical trials, including the ASCEND-NASH trial, which was halted due to insufficient funding. General and administrative expenses also decreased from $1.37 million to $0.92 million, reflecting cost-cutting measures and a reduced workforce.

In terms of strategic developments, Hepion entered into a license agreement with New Day Diagnostics on May 9, 2025, acquiring diagnostic tests for celiac disease, respiratory multiplex, H. pylori, and hepatocellular carcinoma. The agreement included an upfront payment of $525,000 in cash and $270,629 in common stock, along with potential milestone payments totaling up to $17.15 million. However, the company recorded an asset impairment loss of $402,746 related to this acquisition, indicating challenges in achieving projected cash flows from these assets.

As of June 30, 2025, Hepion's cash position improved to $2.92 million, up from $406,408 at the end of 2024, largely due to a public offering that raised approximately $9 million in January 2025. The company reported a working capital of $3.9 million, a significant increase from a working capital deficit of $1.5 million at the end of 2024. Despite this positive cash flow, Hepion continues to face substantial doubt regarding its ability to continue as a going concern without additional capital, as it has not yet achieved profitability and has an accumulated deficit of $245 million.

Looking ahead, Hepion's management emphasized the need for additional financing to support ongoing operations and development efforts. The company is exploring various strategic alternatives and partnerships to enhance its financial position and operational capabilities. However, uncertainties remain regarding the timing and success of future product launches and the overall market acceptance of its diagnostic tests.