HRTX - Heron gains on agreement with Rubric Capital and Velan Capital

Heron Therapeutics ( NASDAQ: HRTX ) shares rose ~10% on Wednesday morning after announcing a cooperation agreement with two of its shareholders, Rubric Capital Management LP and Velan Capital Investment Management LP.

Per the terms, Heron ( HRTX ) has agreed to add Craig Collard, former President & Chief Executive Officer at Veloxis Pharmaceuticals, and Adam Morgan, Chief Investment Officer at Velan, to the company’s board.

The company also said that current directors Stephen Davis and Kimberly Manhard would resign from the board. Kevin Kotler, Founder and Portfolio Manager of Broadfin Capital will join as a new board member.

As a result, Heron’s ( HRTX ) board structure expands to eight directors, including seven independent directors. All directors are expected to stand for election at the upcoming 2023 Annual Meeting.

The company also announced plans to separate the Chairman and CEO roles after the end of the 2023 Annual Meeting.

The appointments come after Rubric Capital disclosed a ~10% stake in Heron ( HRTX ) early this month.

Read: Seeking Alpha contributor Out of Ignorance issued a Hold rating on the company in December, arguing that it is “a high-risk investment.”

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