Is Hepion Pharmaceuticals (HEPA) stock Halal?

Hepion Pharmaceuticals is a clinical-stage biopharmaceutical company specializing in the development of therapies for chronic liver diseases. Its key asset, Rencofilstat, is a potent cyclophilin inhibitor aimed at treating conditions such as non-alcoholic steatohepatitis (NASH), liver fibrosis, and hepatocellular carcinoma (HCC). Rencofilstat targets multiple molecular pathways involved in liver disease progression, from initial triggers to those impairing liver function. For Muslim investors, though, the most pressing question is simpler: is Hepion Pharmaceuticals a Halal investment?

Is Hepion Pharmaceuticals Shariah compliant?

No. In the October 2026 screening Hepion Pharmaceuticals (HEPA) does not pass AAOIFI screening: it fails the non-permissible income and interest-bearing investments screens. Technology companies rarely fail AAOIFI screening on what they sell. Software, hardware and digital services are permissible business activities, so for a company like Hepion Pharmaceuticals the Shariah question moves to the balance sheet: how much of its market value sits in interest bearing debt, how much of its cash earns Riba in conventional deposits, and whether incidental income from impermissible sources creeps past 5% of revenue. These are exactly the ratios AAOIFI Shariah Standard No. 21 polices, and they move every month with the share price.

Does Hepion Pharmaceuticals pass the business activity test?

The activity screen is only part of the picture this month: Hepion Pharmaceuticals currently fails the non-permissible income and interest-bearing investments screens, so the overall verdict is not compliant regardless of the business itself. The watch item for technology names is incidental: cash returns and platform content can carry impermissible elements, which AAOIFI tolerates only below the thresholds.

Is Hepion Pharmaceuticals' income Halal?

No. Hepion Pharmaceuticals' income from impermissible sources currently exceeds AAOIFI's 5% revenue ceiling, which makes the stock non-compliant on this screen regardless of the others. The screen is reassessed monthly, so the status can change when new financial statements arrive.

Does Hepion Pharmaceuticals meet AAOIFI's debt and investment ratio requirements?

Not in full. Interest bearing investments currently exceed the 30% cap, measured against a market capitalisation of $9.02M (market data as of 1 October 2026), while the other ratio stays within it. One breach is enough to fail the screening; the ratios are reassessed monthly under our Shariah Supervisory Board.

Why do other halal screeners show a different verdict for Hepion Pharmaceuticals?

Screeners can disagree without either being wrong. AAOIFI Shariah Standard No. 21, which Tabadulat applies, measures interest bearing debt and investments against market capitalisation with a 30% ceiling. MSCI and FTSE measure them against total assets with a 33% ceiling, and S&P and Dow Jones Islamic use a multi year average of market capitalisation. Data dates differ too, because each provider reads filings and prices on its own schedule. The same company can therefore pass one standard and fail another in the same month. Tabadulat publishes one answer, the AAOIFI result as of October 2026, and re-screens it every month.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the screening method? Read Why a Halal Stock Screener Matters for Halal Investing