The Financial Horizons
No Result
View All Result
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
  • Latest News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
  • Latest News
No Result
View All Result
The Financial Horizons
No Result
View All Result
Home Editor's Pick

HEPA stock price surged but beware of this glaring Hepion risk

by
May 23, 2023
in Editor's Pick
0
HEPA stock price surged but beware of this glaring Hepion risk
0
SHARES
7
VIEWS
Share on FacebookShare on Twitter

Hepion Pharmaceuticals’ (NASDAQ: HEPA) stock price went parabolic on Monday after the company made an important announcement about its mid-stage trial. The shares jumpd by more than 110% and reached a high of $19.66, the highest level since January 17. So, is Hepion a good pharma stock to buy?

Hepion Pharmaceuticals trial

One of the biggest pharma news this week came from Hepion Pharmaceutical. In a statement, Hepion Pharmaceuticals announced that rencofilstat drug met initial goals of its mid-stage trial. Rencofilstat is a non-alcoholic steatohepatitis that aims to reduce fat accumulation in a person’s liver, a condition that is dangerous.

According to the company, the trial showed that patients saw improved liver function after four months of treatment among patients with stage 3 of liver fibrosis. The drug also met other important endpoints in liver injury, alanine, and biomarkers among others. Most of these benefits were seen in the 225 mg dose. The statement added:

“Our improved understanding of which subjects best respond to rencofilstat can be immediately applied to increase the likelihood of success of our larger and longer ASCEND-NASH paired biopsy trial.”

Therefore, HEPA stock price jumped as investors anticipate that the company’s drug will be approved once testing completes. 

HEPA stock dilution likely

Hepion Pharmaceuticals is still a highly risky company to invest in despite the positive results. For one, the firm, which is pre-revenue, has seen its losses jump. Its net loss jumped from over $7 million in 2019 to over $42.2 million in 2022. These losses widened as the company’s research and development (R&D) costs soared.

The challenge for HEPA stock is that the company’s balance sheet is not in good shape for now. This is expected since the company is just spending money without making any income. Its cash and short-term investments dropped from $91 million in 2021 to $51.2 million in 2022. The most recent results shows that the company had $43 million.

Therefore, I suspect that the company will need to raise capital to carry out the next stages of testing and development. Hepion has a history of diluting shareholders since the number of outstanding shares jumped from 248k in 2020 to almost 4 million now.

As such, the company could decide to use the current stock pop to raise more capital. The other risk is that the company is still far from launching its drug. As such, there is a likelihood that the ongoing momentum will fade soon.

The post HEPA stock price surged but beware of this glaring Hepion risk appeared first on Invezz.

Previous Post

The Traders Domain Review: Is it a legit or a scam

Next Post

BT share price just received another catalyst as Drahi adds stake

Next Post
BT share price just received another catalyst as Drahi adds stake

BT share price just received another catalyst as Drahi adds stake

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent News

    Senate Republicans eye changes to Trump’s megabill after House win

    Senate Republicans eye changes to Trump’s megabill after House win

    June 1, 2025
    Trump shares post saying Biden was executed, replaced with clones

    Trump shares post saying Biden was executed, replaced with clones

    June 1, 2025
    House Dems’ campaign chair says her party’s ‘on offense’ in 2026 battle to win back majority from GOP

    House Dems’ campaign chair says her party’s ‘on offense’ in 2026 battle to win back majority from GOP

    June 1, 2025
    Trump warns Rand Paul he’s playing into ‘hands of the Democrats’ with ‘Big, Beautiful Bill’ opposition

    Trump warns Rand Paul he’s playing into ‘hands of the Democrats’ with ‘Big, Beautiful Bill’ opposition

    June 1, 2025
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: Thefinancialhorizons.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thefinancialhorizons.com | All Rights Reserved

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Editor’s Pick
    • Latest News

    Disclaimer: Thefinancialhorizons.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thefinancialhorizons.com | All Rights Reserved