Hepion Pharmaceuticals, Inc. reported a net loss of $13.2 million for the fiscal year ending December 31, 2024, a significant reduction from the $48.9 million loss recorded in the previous year. 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 to $19.3 million from $48.4 million in 2023, primarily due to a reduction in research and development costs, which fell from $35.6 million to $11.8 million. General and administrative expenses also decreased from $9.6 million to $7.5 million.
In terms of strategic developments, Hepion announced a restructuring plan in December 2023 aimed at preserving capital by reducing operating costs. This included a one-time restructuring charge of approximately $0.7 million. However, the company faced challenges in funding its clinical trials, leading to the decision to wind down its ASCEND-NASH clinical trial in April 2024 due to insufficient funding. The company also entered into a merger agreement with Pharma Two B Ltd. in July 2024, which was later terminated in December 2024 due to Nasdaq's decision regarding the treatment of historical losses.
Operationally, Hepion's employee headcount has been affected by its restructuring efforts, although specific figures were not disclosed. The company has not reported any customer counts or user statistics, as it remains focused on clinical trials rather than product commercialization. The company’s cash position has significantly declined, with cash at the end of 2024 reported at $406,408, down from $14.8 million at the end of 2023. This decline reflects the cash used in operating activities, which totaled $18.2 million for the year.
Looking ahead, Hepion's ability to continue operations is uncertain, as it has not generated revenue and has incurred substantial losses since inception. The company has indicated that it will need to secure additional financing to sustain its operations and continue its research and development efforts. The management has expressed that if adequate funds are not available, it may need to curtail planned operations. The company is also facing potential delisting from Nasdaq due to its stock price falling below the required threshold, which adds further pressure to its financial situation.
About Hepion Pharmaceuticals, Inc.
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