Aerpio Reports Second Quarter 2021 Financial Results and Provides Business Update Ended second quarter 2021 with $36.8 million in cash and cash equivalents On

Aerpio Reports Second Quarter 2021 Financial Results

and Provides Business Update

August 11, 2021 Aerpio Pharmaceuticals, Inc. ( Aerpio ) (Nasdaq: ARPO), a biopharmaceutical company, today reported financial results for the three and six months ended June 30, 2021 and provided a business update.

Key Business Update:

Second Quarter 2021 Financial Highlights

30, 2021, cash and cash equivalents totaled $36.8 million, compared to $42.6 million as of December 31, 2020. Common shares outstanding as of June 30, 2021 totaled approximately 47.4 million. Weighted average common

shares (basic and diluted) outstanding for the six months ended June 30, 2021 were 47.3 million.

For the three months ended June 30, 2021,

operating expenses totaled $4.8 million, a decrease of 16.9% compared to $5.7 million for the same period in 2020. For the six months ended June 30, 2021, operating expenses totaled $10.4 million, an increase of 5.2%

compared to $9.9 million for the same period in 2020. The increase in the six month period is primarily due to restructuring expense and increase in administrative expenses compared to the same period in 2020.

Research and development expenses for the three months ended June 30, 2021, decreased approximately 79.7%, to $0.7 million from $3.5

million in the three months ended June 30, 2020. Research and development expenses for the six months ended June 30, 2021, decreased approximately 45.2%, to $2.9 million from $5.4 million in the six months

ended June 30, 2020. This decrease was primarily the result of decreased expenses associated with our clinical programs in the three and six months ended June 30, 2021 compared to the same periods in 2020.

General and administrative expenses for the three months ended June 30, 2021, increased approximately 84.5%, to $4.1

million from $2.2 million, in the three months ended June 30, 2020. General and administrative expenses for the six months ended June 30, 2021, increased approximately 38.1%, to $6.2

million from $4.5 million, in the six months ended June 30, 2020. This increase was primarily the result of increased transaction costs and expenses related to our proposed merger with Aadi.

Restructuring expense for the six months ended June 30, 2021 was $1.2 million compared to zero in the same period in 2020 as a result of the

reduction of headcount which occurred entirely during the first quarter of 2021.

Net loss attributable to common stockholders for the three months

ended June 30, 2021, was $4.4 million, or ($0.09) per common share, compared to net income attributable to common stockholders of $9.3 million, or $0.23 per common share, for the same period in 2020. Net loss

attributable to common stockholders for the six months ended June 30, 2021, was $8.8 million, or ($0.19) per common share, compared to net income attributable to common stockholders of $5.4 million, or

$0.13 per common share, for the same period in 2020. Net income generated during the three and six months ended June 30, 2020, related to cash received in May 2020 as consideration pursuant to the amendment to the Gossamer License

About Aerpio Pharmaceuticals

Aerpio Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing compounds that activate Tie2 for indications in which the Company

believes that activation of Tie2 may have therapeutic potential. For more information, please visit www.aerpio.com.

This communication contains forward-looking statements based upon our current expectations. Forward-looking statements involve

risks and uncertainties, and include, but are not limited to, statements about the structure, timing and completion of the proposed transaction; the combined company s listing on Nasdaq after the closing of the proposed transaction; the

business of the combined company, including Aadi s product candidates, the development therefor and the therapeutic potential thereof; the proposed PIPE and its terms; the opportunity for Aerpio shareholders to receive value from its legacy

assets through the proposed contingent value rights, and the intended benefits from the Aspen s collaboration with Gossamer Bio for GB004, including the continued development of GB004 and the milestone and royalty payments related to the

collaboration. Actual results and the timing of events may differ materially from those indicated by these forward-looking statements as a result of various important factors, including, without limitation: (i) risks associated with

Aerpio s ability to obtain the stockholder approval required to consummate the proposed transaction or to complete the PIPE financing, and the timing of the closing of the proposed transaction, including the risks that a condition to closing

would not be satisfied within the expected timeframe or at all or that the closing of the proposed transaction, including the PIPE financing, will not occur (ii) the response of Aerpio s stockholders to the proposed transaction;

(iii) risks related to Aerpio s ability to manage its operating expenses and its expenses associated with the proposed transaction pending closing; (iv) risks related to the failure or delay in obtaining required approvals from any

governmental or quasi-governmental entity necessary to consummate the proposed transaction; (v) the risk that as a result of adjustments to the exchange ratio, Aerpio stockholders and Aadi stockholders could own more or less of the combined

company than is currently anticipated; (vi) risks related to the market price of Aerpio s common stock relative to the exchange ratio; (vii) unexpected costs, charges, expenditures or expenses resulting from the proposed transaction;

(viii) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transaction; (ix) Aerpio s ability to retain personnel as a result of the announcement or completion

of the proposed transaction; and (x) risks associated with the possible failure to realize certain anticipated benefits of the proposed transaction, including with respect to future financial and operating results and (xi) the risk that

any potential payment of proceeds pursuant to the CVR Agreement may not be distributed at all or result in any value to Aerpio stockholders. Actual results and the timing of events may differ materially from those anticipated in such forward-looking

statements as a result of these risks and uncertainties. These and other risks and uncertainties are more fully described in periodic filings with the SEC, including the factors described in the section entitled Risk Factors in

Aerpio s Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the SEC on March 11, 2021 and in other filings that Aerpio makes and will make with the SEC,

including those related to the proposed merger transaction with Aadi.

These forward-looking statements are made as of the date of this press release, and the Company assumes no

obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law. Investors should consult all the information set forth

herein and should also refer to the risk factor disclosure set forth in the reports and other documents the Company files with the SEC available at www.sec.gov.

Pharmaceuticals, Inc.

Source: Aerpio Pharmaceuticals, Inc.

AERPIO PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

AERPIO PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)