Aerpio Pharmaceuticals (NASDAQ: ARPO) stock appears to be witnessing solid bullish momentum right now. Now ARPO stock price is at $2.06 per share, will the stock hit the $2.5 level again in a short period of time?

Aerpio develops and commercializes compounds that activate Tie2 receptors to treat ocular disease and vascular stabilization. Razuprotafib is the company's lead compound, which is in Phase 2 studies to treat open angle glaucoma.

On May 16, 2021, Aerpio entered into an agreement and plan of merger among Aerpio, Aadi, and Aspen Merger Subsidiary, Inc. Following the proposed merger, Aerpio will change its name to “Aadi Bioscience, Inc.” and the combined public company will focus on advancing Aadi’s lead product candidate. The merger is expected to close in the third quarter of 2021.

Despite there are no other recent company-specific updates, investors appear to be bullish on the stock. The company previously said that it had $39.0 million in cash and cash equivalents as of March 31, 2021, which means that the company has enough capital to advance drug developments in its pipeline. With all of this in mind, this is a penny stock that investors should consider continuing to watch closely.

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