Hillstream BioPharma

Kurta Law is investigating brokers who recommended that their clients purchase shares of Hillstream BioPharma. This investment came with substantial risks that made it unsuitable for many investors. These risks appear in the prospectus, the SEC filing that companies use to disclose their business strategy and related risks prior to offering the securities for sale. Unsuitable investments violate FINRA Rule 2111 and Regulation Best Interest, and investors who incur losses may be able to recover via FINRA arbitration.

If your broker recommended that you invest in Hillstream BioPharma, you may have a claim against the firm through FINRA arbitration.  FINRA arbitration offers a quicker and cheaper remedy for investors than suing in civil court. Contact (877) 600-0098 or email info@kurtalawfirm.com to speak to a securities attorney for free today.

What is Hillstream BioPharma?

Hillstream BioPharma, now known as Tharimmune, Inc., is a biotechnology company attempting to develop therapeutics for inflammatory diseases, according to the company.

At the time of the prospectus filing, Hillstream had one drug, HSB-1216, that was in clinical pilot studies. Other drugs in Hillstream’s portfolio, such as HSB-888, had yet to advance even to that stage. Thus, a significant amount of work and time remained in order to demonstrate that these drugs could be both safe and effective.

Investors should also know that Hillstream Pharma registered as an emerging growth company, meaning that it can make limited disclosures in its prospectus. Less information generally means more risk.

Hillstream Pharma’s Stock

Hillstream Pharma (THAR) investments involve a high degree of risk, according to the company’s prospectus. On January, 10, 2022, the stock closed at $71.25 per share, and recently traded at $0.4579 per share. This massive drop in value was not surprising, given the risks clearly disclosed in the company’s prospectus.

Risks Associated With Hillstream Pharma Investments

Brokerage firms that approve an investment are required to understand the risks associated with an investment. Furthermore, brokers must accurately represent the risks associated with certain investments.

The prospectus states at the beginning of the “Risk Factors” section: “We commenced operations in 2017, have no products approved for commercial sale and have not generated any revenue. Drug development is a highly uncertain undertaking and involves a substantial degree of risk.”

Hillstream had yet to take a drug beyond the early clinical trial stage, and there was no reason to suggest that it would ever be capable of doing so. Additionally, as the prospectus acknowledges, Hillstream’s approach to drug development itself was unproven: “We are using our Quatramer technology to develop product candidates to treat cancer. Our foundational science and product development approach are based on our ability to target specified cells or tissues and converge a therapeutic payload at the site of disease to boost efficacy while abating adverse effects on healthy tissue…However, this approach to treating cancer is novel and the clinical research that results in a product candidate has had limited testing in humans. We are currently in the process of validating different tumor-specific therapeutic product candidates. We may spend substantial funds attempting to develop these products with the Quatramer approach and never succeed in developing a marketable therapeutic.”

Orphan Drug Designation

Companies like Hillstream may apply for orphan drug designation, which entitles the company to government assistance in order to bring a drug to market that treats a rare disease. Failure to obtain this designation would negatively affect the drug’s development.

Other Risks Associated with Commercialization:

The risks associated with this type of investment do not end in the laboratory. Besides the scientific proof that Hillstream still required, the prospectus stated that it would have to overcome the following business hurdles to successfully commercialize.

• Securing substantial additional funding.
• Developing and maintaining successful strategic relationships.
• Building a strong intellectual property portfolio.
• Gaining broad market acceptance for product candidates.
• Adapting to changes within the healthcare industry.
• Building and maintaining appropriate clinical sales, distribution, and marketing capabilities through third parties.

Failure of any one of these goals could result in a total business failure and a complete loss for investors.

ThinkEquity Underwriter

ThinkEquity served as the underwriter of Hillstream Pharma. Investors should know about this broker’s potential conflicts of interest. An underwriter should keep potentially overly risky investments from trading on the public stock market. But because underwriters make money by bringing new stocks to market, they may have a motivation to overlook certain risks.

What Can I Do If I Suffered Losses?

If you lose money investing in Hillstream, consider reaching out to a Kurta Law securities attorney. Our securities attorneys have 5-star reviews on Google and a proven track record when it comes to securing fair settlements for our clients. Call (877) 600-0098 or email info@kurtalawfirm.com.