Hepion Pharmaceuticals Issues Letter to Shareholders Urging Support for Proposed Merger with Pharma Two B

Core Viewpoint - Hepion Pharmaceuticals is urging shareholders to approve its proposed merger with Pharma Two B, which is seen as the best option to maximize shareholder value and address the challenges faced by Hepion as a standalone company [2][6]. Group 1: Merger Rationale - The merger with Pharma Two B is positioned as a transformational opportunity for Hepion, allowing shareholders to benefit from the potential upside of Pharma Two B's late-stage candidate for treating Parkinson's Disease, P2B001 [4][7]. - Hepion's board concluded that remaining a standalone company would not be viable due to financial constraints and a lack of interest from the investment community in funding its drug pipeline [3][6]. Group 2: Financial Challenges - Hepion has faced significant challenges in funding its clinical trials, leading to a deteriorating risk profile and limited financial resources to advance its drug pipeline [3][6]. - If the merger does not receive shareholder approval, Hepion risks delisting from Nasdaq and potential bankruptcy due to its inability to fund ongoing development [6]. Group 3: Future Prospects - The post-merger entity is expected to be well-funded, with plans to advance clinical trials and file a New Drug Application with the FDA for P2B001 [7]. - Although Pharma Two B does not plan to advance Hepion's legacy drug pipeline, there remains a commitment to explore monetization opportunities for its value, which could provide additional upside for shareholders [5].