Hepion Pharmaceuticals, Inc.

HEPA Details

Hepion Pharmaceuticals, Inc. (NASDAQ: HEPA) is a clinical stage biopharmaceutical company targeting treatment for chronic liver diseases such as liver fibrosis, hepatocellular carcinoma (HCC), viral hepatitis and other liver infection. The Company’s main drug i.e., CRV431, helps in reduction of liver fibrosis and inhibits the formation cancerous tumors. Additionally, this drug possesses antiviral activities towards chronic hepatitis virus infection (HBV, HCV and HDV). Recently, under the clinical phase development CRV 431 drug exhibits remarkable role in the overall treatment of liver diseases from initial stage to the end stage diseases. As of October 18, 2021, the company's market capitalization stood at USD 116.63 million.

Latest News:

• DDI Study of CRV431: On September 29, 2021, HEPA announced the results of Drug-Drug Interaction (DDI) study of CRV431. The study was conducted on healthy volunteers to ascertain whether single or multiple oral doses of ketoconazole (400 mg) influence the pharmacokinetics (PK) of CRV431 (75 mg) and its major metabolites. It was observed that ketoconazole, a robust inhibitor of CYP3A4, increased CRV431 exposures by almost five-fold while remaining safe and well tolerated, indicating CRV431's safety even in the presence of pharmacological inhibitors
  

Q2FY21 Results:

• No Visibility in Topline: HEPA didn’t report any revenue in Q2FY21.
• Increase in R&D Expenses: The company incurred research and development (R&D) expenses of USD 4.19 million in Q2FY21 compared to USD 2.95 million in Q2FY20. The increase was attributable to higher spending on ongoing studies and clinical trials, consulting costs, and increased employee compensation costs.
• Expansion of Net Losses: The company's net loss increased to USD 7.67 million in Q2FY21 from USD 4.94 million in Q2FY20.
• Cash and Debt Position: As of June 30, 2021, the company had cash and cash equivalents of USD 110.09 million and no outstanding debt.

Risks:

• Product Concentration Risk: HEPA’s prospects are dependent solely on the commercial success of its sole product candidate CRV431. It has invested a considerable amount of resources in its development, and if it fails to obtain the marketing approval or put an efficient manufacturing and distribution mechanism in place, its results of operations would be adversely impacted.
• Dependence On Third party Manufacturers: HEPA is dependent on third-party suppliers for the production of its drugs and does not have a manufacturing facility of its own. This may hamper its ability to meet product demand and hence, the business as a whole.

HEPA Daily Technical Chart (Source: REFINITIV)

Stock Recommendation:

HEPA' share price has decreased 33.48% in the past nine months and is currently leaning towards the lower end of its 52-week range of USD 1.36 to USD 3.69. The stock is currently trading just below its 50 and 200 DMA levels, and its RSI Index is at 48.63.

Considering the correction in the stock price in the past nine months, positive results from the clinical studies, and associated risks, we recommend a "Speculative Buy" rating on the stock at the closing price of USD 1.53, down 1.32% as of October 18, 2021.

* The reference data in this report has been partly sourced from REFINITIV.

* All forecasted figures and industry information have been taken from REFINITIV.

* Depending upon the risk tolerance, investors may consider unwinding their positions in a respective stock once the estimated target price is reached.