Aerpio Pharmaceuticals Announces Review of Strategic Alternatives
October 21 2019 - 5:00AM
Business Wire
Aerpio Pharmaceuticals, Inc. (NasdaqCM: ARPO), a
biopharmaceutical company focused on developing compounds that
activate Tie2 to treat ocular disease and diabetic complications,
today announced that its Board of Directors has initiated a process
to explore and review a range of strategic alternatives focused on
maximizing stockholder value from the Company’s clinical assets and
cash resources, which amounted to $48.2 million as of June 30,
2019. The Board is exploring the potential for an acquisition,
company sale, merger, business combination, asset sale, in-license,
out-license or other strategic transaction.
In addition, Aerpio has engaged Evercore, Ladenburg Thalmann
& Co. Inc. and Duane Nash, M.D., J.D., M.B.A. to act as
strategic advisors for this process. There can be no assurance that
this exploration of strategic alternatives will result in the
Company entering or completing any transaction. Aerpio does not
intend to make any further disclosures regarding the strategic
review process unless and until a specific course of action is
approved.
In parallel with this strategic review, the Company also intends
to streamline operations in order to preserve its capital and cash
resources. Going forward, the management team will be led by Joseph
Gardner, Ph.D., the Company’s current President with Gina Marek,
the company’s Vice President of Finance, continuing in her
position. Stephen J. Hoffman, M.D., Ph.D., and Michael W. Rogers,
the company’s Chief Executive Officer and Chief Financial Officer,
respectively, have transitioned from their roles, and Dr. Hoffman
has resigned from his position on the Board.
About Aerpio Pharmaceuticals
Aerpio Pharmaceuticals, Inc. is a biopharmaceutical company
focused on advancing first-in-class compounds that activate Tie2 to
treat ocular diseases and complications of diabetes. Tie2 is an
important regulator of vascular stability, and its down-regulation,
through activation of two inhibitors VE-PTP and Ang-2, is found in
patients with diabetes and other conditions. The Company’s lead
compound, AKB-9778, a first-in-class small molecule inhibitor of
VE-PTP, is being investigated in an ongoing Phase 1b clinical trial
as a topical drop formulation for its therapeutic potential in
open-angle glaucoma. In the recently completed phase 2b study
(TIME-2b) AKB-9778 demonstrated the ability to lower proteinuria
(as measured by decreasing urinary albumin creatine ratio, UACR) by
about 20% replicating a finding in the previous phase 2 study. The
decrease in proteinuria suggests that AKB-9778 and our other Tie2
activating drug, ARP-1536, may have the potential to improve kidney
function in diabetics potentially delaying progression to kidney
dialysis. The Company’s second asset, ARP-1536 is a humanized
monoclonal antibody observed to activate Tie2 receptors in a
dose-dependent manner in preclinical models. Aerpio believes
ARP-1536 holds potential as a monthly or biweekly systemic therapy
to treat diabetic complications, including diabetic nephropathy.
The company’s third asset is a bispecific antibody that binds both
VEGF and VE-PTP which inhibits VEGF activation and activates Tie2.
This bispecific antibody has the potential to be an improved
product for treating wAMD and DME via intravitreal injection.
Finally, the Company has exclusively out-licensed its fourth asset
AKB-4924 (now called GB004), a first-in-class small molecule
inhibitor of hypoxia-inducible factor-1 (HIF). GB004 is being
developed by AKB-4924’s exclusive licensor, Gossamer Bio, Inc.
(Nasdaq: GOSS), in return for an upfront payment of $20 million,
future potential development, regulatory, and sales milestones of
up to $400 million, and royalties on worldwide net sales. For more
information, please visit www.aerpio.com.
Forward Looking Statements
This press release contains forward-looking statements.
Statements in this press release that are not purely historical are
forward-looking statements. Such forward-looking statements
include, among other things, the Company’s strategic alternatives
review process and the potential transactions that may be
identified and explored as a result of that process, the Company’s
product candidates, including AKB-9778 and ARP-1536, and the
therapeutic potential thereof, and the intended benefits from its
collaboration with Gossamer Bio, Inc. for GB004. Actual results
could differ from those projected in any forward-looking statements
due to several risk factors. Such factors include, among others,
the ability to identify and consummate strategic alternatives that
yield additional value for shareholders; the timing, benefits and
outcome of the Company's strategic alternatives review process,
including the determination of whether or not to pursue or
consummate any strategic alternative; the structure, terms and
specific risks and uncertainties associated with any potential
strategic transaction; potential disruptions in our business and
the stock price as a result of our exploration, review and pursuit
of strategic alternatives or the public announcement thereof and
any decision or transaction resulting from such review; the ability
to continue to develop AKB-9778 or other product candidates; the
inherent uncertainties associated with the drug development
process, including uncertainties in regulatory interactions,
commencing clinical trials and enrollment of patients in clinical
trials; and competition in the industry in which the Company
operates and overall market conditions; and the additional factors
set forth in our Annual Report on Form 10-K for the year ended
December 31, 2018, as updated by our subsequent filings with the
SEC. These forward-looking statements are made as of the date of
this press release, and the Company assumes no obligation to update
the forward-looking statements, or to update the reasons why actual
results could differ from those projected in the forward-looking
statements, except as required by law. Investors should consult all
the information set forth herein and should also refer to the risk
factor disclosure set forth in the reports and other documents the
Company files with the SEC available at www.sec.gov.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191021005202/en/
Burns McClellan, on behalf of Aerpio Pharmaceuticals, Inc.
Media: Robert Flamm, Ph.D. rflamm@burnsmc.com or Investors: John
Grimaldi jgrimaldi@burnsmc.com
Aerpio Pharmaceuticals (NASDAQ:ARPO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Aerpio Pharmaceuticals (NASDAQ:ARPO)
Historical Stock Chart
From Apr 2023 to Apr 2024