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small-cap

Should Investors make an exit from this Biopharmaceutical Stock - HEPA

Jan 26, 2022 | Team Kalkine
Should Investors make an exit from this Biopharmaceutical Stock - HEPA

Hepion Pharmaceuticals, Inc.

Hepion Pharmaceuticals, Inc. (NASDAQ: HEPA)  is a biopharmaceutical company, focuses on the development of drug therapy treatment for chronic liver diseases in the United States. The company is majorly involved in developing CRV431, a cyclophilin inhibitor that is in Phase 2a clinical trials to target multiple pathologic pathways involved in the progression of liver disease. Hepion Pharmaceuticals, Inc. was incorporated in 2013 and is headquartered in Edison, New Jersey.

Why should Investors make an EXIT?

  • Increse in operating Expenses : For the quarter ending September 2021,the operating expenses increased from $6.85 million to $8.52 million, and the trend isn’t much expected to be changed as the company failed to make any announcement progressing towards expecting the sources of income lined for the the quarter ended December 2021.
  • Weak technicals : The chart for the Hepion Pharmaceuticals, Inc., is on a weaker side and not showing any signs of revial in coming time any soon. The Relative Strength Index is pointing at 35.15, which is on the lower side and any further downside can take the price towards the south.
  • Detiorating Financials: The quarter on quarter financials were not very impressive where the Net Losses increased from $7.67 million for the quarter ending June 2021 to the net loss of $9.27 million for September 2021 ending quarter.
  • Macro headwinds : The recent talks echoing around the arena of rising interest rates sooner to counter the inflation, will put pressure on the company to raise short term funding for working capital, unless the organic cash generated from normal business operations. This is a headwind which the company is facing in near term, making it less attractive for the investors.

HEPA Daily Technical Chart (Source: REFINITIV)

Stock Recommendation:

HEPA's stock price has declined 59.13% in the past twelve months and is currently leaning towards the lower band of its 52-week range of USD 0.862 to USD 3.18. The stock is currently trading below its 50 and 200 DMA levels, and its RSI Index is at 34.15.

Considering the correction in the stock price in the past twelve months, the detrirating financials and macro headwinds, regulatory approval, and associated risks, we recommend to ‘Sell’ the stock at the current price of USD 0.999 as of January 25, 2021, 03:25 PM ET.

* The reference data in this report has been partly sourced from REFINITIV.

* All forecasted figures and industry information have been taken from REFINITIV.

* Depending upon the risk tolerance, investors may consider unwinding their positions in a respective stock once the estimated target price is reached.