StreetInsider.com Top Tickers, 06/30/2022
News and research before you hear about it on CNBC and others. Claim your one week free trial for StreetInsider Premium here.
Heron Therapeutics, Inc. (Nasdaq: HRTX), a commercial-stage biotechnology company focused on improving the lives of patients by developing and commercializing therapeutic innovations that improve medical care, today announced a restructuring and cost reduction to address current market dynamics and prepare the business for long-term sustainability. The company expects these actions to result in annualized cost savings of $43 million and allow Heron to maintain a streamlined organization to support its acute care and cancer care franchises and expand its sales pipeline. Treasury.
“To address the current market realities and macro headwinds faced by many commercial-stage biotech companies, we are enacting critical plans to protect Heron’s long-term sustainability and growth plans. This restructuring and cost reduction plan should support our operations, with business development activities intended to provide the resources needed to further expand the runway,” said Barry Quart, Pharm.D., President and CEO of Heron. “We continue to have enormous confidence in ZYNRELEF® and our oncology care franchise products, CINVANTI® and SUSTOL®, with an increase in sales in both franchises in the second quarter compared to the first quarter of this year. Our commercial team continues to focus on accelerating the utilization of ZYNRELEF and growing in-demand unit sales of our cancer care products. Our research and development team continues to focus on ZYNRELEF’s label expansion in the United States and continues to work towards approval of HTX-019 for postoperative nausea and vomiting (PONV) with the Food and United States Drug Administration (FDA). »
The Company’s restructuring and cost reduction plan includes the following elements:
- Downsizing: The majority of cost savings will result from significant headcount reductions across the company’s research and development organization, with approximately 70% of total employee reductions coming from research and development. The remaining research and development team will support the label expansion for ZYNRELEF and the HTX-019 New Drug Application for PONV. In total, these actions will result in a 34% reduction in the company’s total workforce.
- Streamlined operational expenses: Includes reductions and reallocations of global, general and administrative sales (SG&A) expenses, as well as savings related to the reduction of external expenses.
Dr. Quart continued, “These restructuring and cost reduction measures, while challenging, are necessary to address the challenging operating landscape and better position Heron to improve the lives of patients while creating long-term value for shareholders. On behalf of the Board of Directors, I would like to thank our valued colleagues who are leaving Heron. We are extremely grateful for their contributions and dedication which has enabled us to deliver three important medicines over the past five years that are helping patients, with another expected soon. These achievements are truly remarkable, and we look forward to continuing to implement our multi-franchise strategy with the team in place.”