In a significant development, Pharma Two B Ltd., a late-clinical stage private Israeli company, has announced Pharma Two B Ltd., would acquire Hepion Pharmaceuticals, Inc. a clinical-stage biopharmaceutical company developing treatments for non-alcoholic steatohepatitis (NASH), hepatocellular carcinoma (HCC), and other chronic liver diseases. Under the merger deal worth $2.9 million, Hepion would merge with and become an indirectly wholly-owned subsidiary of Pharma Two B.
Pharma Two B is currently developing P2B001, an innovative combination product candidate in development for treating Parkinson’s Disease. The Company believes that P2B001 offers a novel and easy-to-use therapeutic approach to address the significant unmet need for an effective, safe, once-daily treatment with a lower incidence of excessive daytime sleepiness.
In a related transaction, Hepion Pharmaceuticals also announced a private placement of $2.9 million in non-convertible senior notes to qualified institutional investors. The remaining $600,000 of the proceeds will be loaned by the Company to Pharma Two B through a nonconvertible unsecured note maturing on the same terms as the $2.9 million notes.
The deal is expected to provide Hepion shareholders with the opportunity to join a company that has the potential to file an NDA in a large therapeutic area with unmet medical needs. “We believe the transaction that we are announcing today with Pharma Two B Ltd. presents a great opportunity for our shareholders to become part of a company on the verge of filing an NDA in a therapeutic area where there is a major unmet medical need,” said John Brancaccio, Executive Chairman of Hepion Pharmaceuticals.
The transaction is subject to usual closing conditions and regulatory approvals and is likely to close in the first half of 2024.
