Aerpio Pharmaceuticals, Inc. (ARPO) SEC Filing 10-Q Quarterly report for the period ending Monday, September 30, 2019

Exhibit 99.1

Aerpio Reports Third Quarter 2019 Financial Results and Provides Business Update

CINCINNATI — (BUSINESS WIRE) — Aerpio Pharmaceuticals, Inc. (Nasdaq: ARPO), a biopharmaceutical company focused on developing compounds that activate Tie2 to treat ocular diseases and diabetic complications, today reported financial results for the third quarter ended September 30, 2019, and provided a business update.

Recent Developments

As reported on October 21, 2019, the Company announced that its Board of Directors had 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. At that time, the Company also engaged Evercore, Ladenburg Thalmann & Co. Inc., and Duane Nash, M.D, J.D., M.B.A. to act as strategic advisors. The Company cannot guarantee that this process will culminate in a transaction.

In addition, the Company announced a plan to streamline operations in order to preserve capital and cash resources. The Company’s management team is now led by Joseph Gardner, Ph.D., the Company’s President, and Regina Marek, the Company’s Vice President of Finance.

Finally, on September 27, 2019, the Company completed dosing of the first three cohorts of healthy subjects in a Phase 1b clinical trial to evaluate the safety and pharmacokinetics of a topical drop formulation of AKB-9778. The clinical trial is continuing with enrollment of glaucoma patients in the next cohort, with topline results anticipated in the first quarter of 2020.

Third Quarter 2019 Financial Highlights

As of September 30, 2019, cash and cash equivalents totaled $43.4 million. Total shares outstanding, as of September 30, 2019, were 40.6 million.

For the three months ended September 30, 2019, operating expenses totaled $5.0 million, including $0.6 million in non-cash stock compensation expense, compared to $7.6 million, including $0.8 million in non-cash stock compensation expense, for the same period in 2018.

Research and development expenses for the three months ended September 30, 2019, decreased $1.5 million, or 34.6%, compared to the same period in 2018. This decrease was primarily the result of decreased expenses associated with the TIME-2b clinical trial of AKB-9778, offset by spending related to the Phase 1b clinical trial of topical drop formulation of AKB-9778, which commenced during the second quarter of 2019.