Aerpio Pharmaceuticals (ARPO) has initiated a process to explore and review a range of strategic alternatives

January 5, 2021 4:02 PM EST

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Aerpio Pharmaceuticals, Inc. (“Aerpio” or the “Company”) (Nasdaq: ARPO), a biopharmaceutical company focused on developing compounds that activate Tie2, 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 $47.3 million as of September 30, 2020.

As part of this process, the Company will explore strategic options for partnering its programs, as well as, the potential for an acquisition, company sale, merger, business combination, asset sale, in-license, out-license or other strategic transaction. Ladenburg Thalmann & Co. Inc. will continue to act as Aerpio’s financial advisor with respect to the strategic review process. There can be no assurance that this exploration of strategic alternatives will result in the Company entering or completing any transaction.

Aerpio programs to be incorporated into this review include:

  • Phase 2 program of razuprotafib in glaucoma: a recently completed a Phase 2 trial in glaucoma patients showed that the change from baseline in diurnal mean IOP at Day 28 of study eyes treated with razuprotafib BID plus latanoprost was statistically significant (two-sided p-value 0.0130 and LS mean difference of -0.92 mmHg) compared to those treated with latanoprost monotherapy. Further analysis of the results demonstrated that razuprotafib had a larger IOP reduction after longer duration dosing (28 days versus 14 days) consistent with its potential mechanism of repairing Schlemm’s canal. Razuprotafib also produced larger IOP reductions in patients with higher starting IOP, or a 1.6 mmHg IOP reduction in patients with post wash-out IOP’s of >26 mmHg. The razuprotafib topical drops were well tolerated in this trial.
  • Phase 2 program of razuprotafib in COVID-19: the Company has two ongoing clinical trials of razuprotafib to prevent or mitigate acute respiratory distress syndrome (ARDS) in COVID-19 patients where patient enrollment and dosing continues. If successful, these trials may open the door to treating ARDS across a broader array of infections.
  • Preclinical Tie2 activating antibodies: the Company also has Tie2 activating antibodies in early development, including both a monospecific antibody that may be used to treat diabetic complications, and a bispecific antibody that may be used to treat retinal diseases such as diabetic macular edema (DME) and wet age related macular edema (wAMD).

Aerpio does not intend to make any further disclosures regarding the strategic review process unless and until specific actions are approved.

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