Hepion Pharmaceuticals and Pharma Two B have terminated a reverse merger agreement that was expected to close by the end of the year.
The decision was mutual, meaning neither company will have to pay a termination fee, according to a Dec. 11 release.
Back in July, New Jersey-based Hepion and private Israeli biotech Pharma Two B inked the agreement after the former gave up on its liver disease ambitions due to a lack of money.
Despite trying to cut operating costs in half at the end of 2023, Hepion had to stop work in April on a phase 2 trial for its lead cyclophilins inhibitor in metabolic dysfunction-associated steatohepatitis (MASH), citing “resource constraints.”
The Nasdaq-listed biotech had explored “strategic options” before deciding to merge with Pharma Two B, a move that would bring the merged entity to the Nasdaq under the ticker symbol “PHTB.” The company was planning to focus on Pharma Two B’s late-stage asset, a pramipexole-rasagiline fixed-dose combination for Parkinson’s called P2B001.
“As we advance P2B001’s development following the successful completion of our phase 3 clinical trial, we believe it is the right time to enter the public equity markets,” Pharma Two B CEO Dan Teleman said at the time.
Pharma Two B had also agreed to sell $11.5 million of its ordinary shares and accompanying series A and B warrants to an investor syndicate. The money, in part, was designed to help repay up to $2.9 million of Hepion’s outstanding senior unsecured notes.
Now, in the wake of the canceled deal, Hepion has said it will—to the extent that cash is available—provide any value derived from its lead asset to shareholders. Hepion also canceled its special meeting of its stockholders slated for Dec.12.