Monday, Hepion Pharmaceuticals Inc ( HEPA ) entered into a definitive merger agreement with Pharma Two B Ltd., a late-clinical stage private Israeli company developing P2B001, a combination product candidate in development for Parkinson’s Disease.

The merger is valued at an estimated pro-forma implied equity value of approximately $58.5 million.

Hepion will merge into and become an indirectly wholly-owned subsidiary of Pharma Two B.

The combined company will continue to operate under the “Pharma Two B” name. Pharma Two B has agreed to file a registration statement with the SEC to register the ordinary shares proposed to be issued to Hepion’s equity holders in the acquisition. It will also apply to list its ordinary shares on Nasdaq under the ticker symbol “PHTB.”

“P2B001 offers a novel, easy-to-use therapeutic approach, that is designed to address the unmet need for an effective, safe, once-daily, no titration required treatment with a lower incidence of excessive daytime sleepiness—a common side effect of currently available dopamine agonist treatments in Parkinson’s disease patients” said Dan Teleman, Chief Executive Officer of Pharma Two B.

“Our company is in a stage that we believe meets the public market and investors’ expectations. We are excited about Pharma Two B’s next growth phase, moving P2B001 towards an NDA submission targeted for the first half of 2026 and making this potential treatment available to patients,” he continued.

Hepion has also announced a private placement of $2.9 million non-convertible senior notes to qualified institutional investors.

Pharma Two B has entered into a securities purchase agreement for an $11.5 million private placement of ordinary shares and accompanying Series A warrants and Series B warrants.

In April, Hepion Pharmaceuticals ( HEPA ) began wind-down activities in its ASCEND-NASH Trial while continuing to explore strategic alternatives, as previously announced in December 2023.

Price Action: HEPA stock is up 1.96% at $1.04 during the premarket session at last check Monday.

Read Next:

Johnson & Johnson Faces Legal Hurdle In Talc Lawsuit Battle.