Executive Summary / Key Takeaways

• Strategic Pivot to National Security: Tharimmune's lead asset, TH104, has shifted focus to temporary prophylaxis against high-potency opioid exposure for military and first responders, a critical national security need, with a potentially accelerated 505(b)(2) NDA pathway requiring no additional clinical trials for dosing.
• Pioneering Oral Antibody Delivery: The company's TH023 program, leveraging Intract's proprietary oral delivery platform, shows promising preclinical data for oral infliximab, aiming to revolutionize treatment for inflammatory conditions by offering a non-injectable biologic.
• Innovative Immuno-Oncology Pipeline: Tharimmune is developing novel bispecific antibodies (HS1940, HS3215) using its EpiClick™ Technology, targeting "undruggable epitopes" in high-value immuno-oncology targets, offering a differentiated approach in a competitive landscape.
• Significant Liquidity Challenges: As a clinical-stage company with no revenue, Tharimmune faces substantial doubt about its ability to continue as a going concern, necessitating continuous capital raises to fund its extensive R&D and operational activities.
• High-Risk, High-Reward Profile: While the company's innovative pipeline and strategic focus on unmet needs present considerable long-term potential, investors must weigh this against the inherent risks of clinical development, regulatory hurdles, intense competition, and persistent funding requirements.

Unveiling Tharimmune: Innovation at the Crossroads of Immunology and National Security

Tharimmune, Inc. (formerly Hillstream BioPharma, Inc.), a clinical-stage biotechnology company, is carving out a unique position in the healthcare landscape by developing therapeutic candidates for immunology, inflammation, and oncologic conditions with high unmet needs. Incorporated in 2017 and publicly traded since January 2022, Tharimmune has strategically evolved its pipeline, emphasizing differentiated technologies to address complex medical challenges. The company's journey reflects a commitment to innovation, marked by key licensing agreements and a recent, impactful pivot in its lead program.

The biotechnology industry is characterized by intense competition, high R&D costs, and significant regulatory hurdles. Against this backdrop, Tharimmune's strategy centers on developing novel, targeted biologics and small molecules, often through strategic collaborations, to exploit niche markets and address specific disease mechanisms that larger pharmaceutical players may overlook or find challenging. This approach aims to create a competitive moat through intellectual property and unique therapeutic advantages, rather than competing head-on with the broad portfolios of industry giants.

Technological Edge: Differentiated Platforms for Unmet Needs

Tharimmune's core investment thesis is deeply intertwined with its technological differentiators across its pipeline. These innovations aim to provide tangible benefits over existing or developing alternatives, forming the bedrock of its long-term growth strategy.

The company's lead asset, TH104, is a transmucosal buccal film formulation of nalmefene. While initially developed for chronic pruritus in Primary Biliary Cholangitis (PBC), a rare liver disease affecting over 70% of patients with debilitating itching, TH104 has recently taken on a critical new role. Following positive FDA feedback in March 2025, TH104 is now being prioritized for the temporary prophylaxis of respiratory and/or nervous system depression in military personnel and chemical incident responders exposed to high-potency opioids (PrHPO). This strategic pivot is significant because the FDA indicated that no additional clinical trials would be required to define the prophylactic dosing window prior to IND or NDA submission for this indication, only nonclinical studies. Recent pharmacokinetic (PK) simulation results for TH104 in this PrHPO indication are "Highlighting Potential Superiority Over Existing Treatments," suggesting a rapid and predictable delivery profile crucial for emergency countermeasures. The securing of key global patents for TH-104 further strengthens its market position and enables a long-term strategy for broader indications.

Another cornerstone of Tharimmune's innovation is TH023, an oral anti-Tumor Necrosis Factor-alpha (TNF-α) monoclonal antibody (infliximab), exclusively licensed from Intract Pharma Limited. This program leverages Intract's proprietary "Soteria" and "Phloral" delivery platforms, aiming to overcome the significant challenge of oral biologic delivery. Positive preclinical results in a murine model demonstrated successful oral delivery of infliximab, with detected serum concentrations "significantly higher than the standard serum trough concentration needed for antibody efficacy in immunology indications via injection (~3-5µg/ml)." This breakthrough could fulfill the promise of delivering a safe and effective oral antibody medication against inflammation, offering a significant advantage in patient convenience and compliance over injectable biologics.

Beyond these lead programs, Tharimmune is advancing an early-stage immuno-oncology (IO) pipeline, including HS1940 and HS3215, utilizing its proprietary EpiClick™ Technology. This versatile multispecific antibody engineering platform enables the development of antibodies, including bispecifics and small molecular weight bovine-derived knob domains, with the "potential to target and bind more tightly to undruggable epitopes differently than full sized antibodies." HS1940 is a bispecific biologic against both PD-1 and VEGF, designed for unique binding differentiation in IO vulnerable tumors. HS3215 is a HER2/HER3 bispecific antibody targeting a novel bridging epitope for multiple solid tumor types. These technologies aim to open new therapeutic avenues by addressing targets previously considered inaccessible, thereby expanding the addressable market and creating a strong competitive barrier.

Financial Performance and Liquidity: A Development-Stage Reality

As a clinical-stage biotechnology company, Tharimmune currently generates no revenue. For the three and six months ended June 30, 2025, the company reported no revenues, a common characteristic for companies at this stage of development. This absence of revenue underscores the critical importance of its pipeline progression and capital management.

Operating expenses for the three months ended June 30, 2025, totaled $1.85 million, down from $2.37 million in the prior-year period. For the six months ended June 30, 2025, total operating expenses were $4.40 million, a decrease from $4.72 million in the same period of 2024. This reduction was primarily driven by a decrease in research and development (R&D) expenses. R&D expenses for the three months ended June 30, 2025, decreased by approximately $0.5 million (45%) to $0.5 million, largely due to lower pre-clinical vendor expenses ($0.3 million) and license fees ($0.4 million), partially offset by increased stock-based compensation ($0.2 million). Similarly, for the six months ended June 30, 2025, R&D expenses decreased by $0.9 million (44%) to $1.1 million, reflecting reduced pre-clinical vendor expenses ($0.5 million), license fees ($0.4 million), and clinical trial costs ($0.2 million), again partially offset by higher stock-based compensation ($0.2 million). This trend suggests a strategic reallocation and potential streamlining of R&D efforts, with a new program like TH023 incurring $132,557 in R&D expenses for the six months ended June 30, 2025, while older programs like HS1940 and HS3215 saw reduced spending.

General and administrative (G&A) expenses saw a slight decrease of $0.1 million (5%) to $1.3 million for the three months ended June 30, 2025, primarily due to lower personnel expenses ($0.3 million) offset by increased investor relations fees ($0.2 million). However, for the six months ended June 30, 2025, G&A expenses increased by $0.6 million (21%) to $3.3 million, driven by higher stock compensation ($0.3 million), investor relations ($0.5 million), and director remuneration ($0.2 million), partially offset by a $0.4 million decrease in personnel expense. These fluctuations reflect the costs associated with being a public company and recent leadership changes.

The company reported a net loss of $1.86 million for the three months ended June 30, 2025, an improvement from a $2.33 million net loss in the prior-year quarter. For the six months ended June 30, 2025, the net loss was $4.40 million, compared to $4.58 million in the same period of 2024. Interest income significantly decreased due to a lower cash balance, highlighting the impact of ongoing cash burn.

Tharimmune's liquidity remains a critical concern. As of June 30, 2025, cash and cash equivalents stood at $2.24 million, down from $3.56 million at December 31, 2024. The company utilized approximately $3.83 million in net cash from operating activities during the six months ended June 30, 2025, contributing to an accumulated deficit of approximately $41.30 million.

These conditions have led management to conclude that there is "substantial doubt about our ability to continue as a going concern for at least one year" from the 10-Q filing date. To address this, Tharimmune has actively pursued financing, raising approximately $5.9 million in net proceeds from private placement offerings in June and December 2024, and June 2025. Further, the company secured approximately $2.84 million in net proceeds from registered direct public offerings and private placements in July 2025. These capital raises are essential to sustain operations and advance its pipeline.

Competitive Landscape and Strategic Positioning

Tharimmune operates in a highly competitive biotechnology sector, facing both large, established pharmaceutical companies and numerous smaller, innovative biotechs. Its direct competitors include industry giants like Bristol-Myers Squibb (BMY), Merck & Co. (MRK), Amgen (AMGN), and Pfizer (PFE), all of whom possess extensive resources, diversified pipelines, and established commercialization capabilities in oncology and inflammatory diseases.

Compared to these behemoths, Tharimmune's financial metrics are starkly different. While BMY, MRK, AMGN, and PFE all report substantial revenues, positive gross, operating, and net profit margins (e.g., MRK's gross profit margin of 0.76 and net profit margin of 0.27 in 2024), and robust cash flows, Tharimmune currently has no revenue and consequently 0% margins across the board. Its current ratio of 1.17 is significantly tighter than competitors like MRK (1.36) and AMGN (1.26), indicating less short-term liquidity. This highlights Tharimmune's early-stage, high-risk profile where valuation is primarily driven by pipeline potential rather than current financial performance.

Tharimmune's competitive strategy is to differentiate through its innovative technologies and focus on high-unmet-need niches. The TH104 program, particularly its PrHPO indication, positions Tharimmune as a potential solution provider for a critical national security need, a market segment not typically dominated by traditional pharma. The FDA's feedback on a 505(b)(2) NDA pathway, potentially bypassing extensive clinical trials for this specific indication, offers a significant competitive advantage in terms of development speed and capital efficiency. This contrasts sharply with the lengthy and costly development cycles often undertaken by larger competitors.

The TH023 program, with its oral antibody delivery platform, represents a potential paradigm shift in treating inflammatory conditions. If successful, this technology could offer superior patient convenience and compliance, creating a strong competitive moat against existing injectable TNF-α inhibitors offered by many large players. This innovation could allow Tharimmune to capture market share by addressing a significant patient preference.

Furthermore, Tharimmune's immuno-oncology pipeline, leveraging EpiClick™ Technology to target "undruggable epitopes" with bispecific antibodies like HS1940 and HS3215, aims to tackle challenges that conventional antibodies may not. This technological approach could lead to therapies with unique binding differentiation and potentially superior efficacy in specific tumor types, offering a competitive edge in a crowded oncology market. While larger competitors also invest heavily in next-generation biologics, Tharimmune's specialized focus on novel binding mechanisms could yield breakthrough therapies.

However, Tharimmune's smaller scale and reliance on external funding remain significant vulnerabilities. Its ability to out-execute larger rivals in manufacturing, regulatory navigation, and commercialization will depend heavily on successful partnerships and continued capital infusion. The company's dependence on third-party suppliers and contract research organizations also introduces operational risks that larger, more integrated companies might mitigate internally.

Outlook and Risks

Tharimmune's outlook is defined by its ambitious pipeline and the critical need for continued funding. The company expects its R&D expenses to increase as it plans and commences clinical trials for HS1940 and HS3215, reflecting progression in its immuno-oncology programs. General and administrative expenses are also projected to rise with increased personnel and public company obligations.

The most immediate catalyst is the advancement of TH104 for PrHPO, with the company actively progressing its Chemistry, Manufacturing, and Controls (CMC) plan to meet NDA requirements. The "nearer term opportunity" of filing an NDA for PrHPO, followed by pursuing the PBC pruritus indication, outlines a clear strategic roadmap. For TH023, the goal is to initiate a first-in-human bioavailability clinical trial after optimizing its CMC program. The recent global patent grants for TH104 further solidify its long-term potential across broader indications.

Despite these promising developments, significant risks persist. The "going concern" warning highlights the paramount need for additional capital. There is no guarantee that Tharimmune will secure sufficient funding on acceptable terms or in a timely manner. A failure to do so could force delays or termination of clinical trials, severely impacting its business objectives. Regulatory approvals are never assured, and even if approved, market acceptance of its products is uncertain. The competitive landscape means that even innovative products must demonstrate clear advantages to gain traction against established therapies.

Conclusion

Tharimmune stands at a pivotal juncture, balancing the immense potential of its innovative pipeline with the inherent financial and operational challenges of a clinical-stage biotechnology company. Its strategic pivot of TH104 to a national security medical countermeasure, coupled with the groundbreaking potential of oral antibody delivery through TH023 and the differentiated approach of its EpiClick™-powered immuno-oncology assets, presents a compelling narrative of innovation targeting high-unmet-need areas. The positive FDA feedback for TH104's accelerated pathway and promising preclinical data for TH023 underscore the scientific merit and strategic foresight driving the company.

However, the persistent "going concern" warning and the continuous need for capital underscore the high-risk nature of this investment. Tharimmune's ability to translate its technological leadership into commercial success will hinge on its execution of capital-efficient development strategies, successful navigation of regulatory pathways, and securing the necessary funding to advance its programs to market. For investors with a high tolerance for risk and a long-term horizon, Tharimmune represents a speculative yet potentially rewarding opportunity, where technological differentiation in critical therapeutic areas could unlock substantial value, provided the company can overcome its significant liquidity hurdles.