HRTX - Heron stock slumps ~35% amid quarterly misses on both lines
2023-05-12 11:50:49 ET
Heron Therapeutics ( NASDAQ: HRTX ) stock fell ~35% on Friday after Q1 2023 results missed estimates.
Its Q1 net loss narrowed to -$32.77M, compared to -63.89M in Q1 2022.
Net product sales grew 26.2% Y/Y to $29.62M but missed analysts expectations. The company said sales growth was mainly due to its oncology care franchise, which increased 15% Y/Y to $25.8M.
Net product sales of Zynrelef (bupivacaine and meloxicam) extended-release solution were $3.5M in Q1. The pain drug had generated $3.9M in Q4.
Heron noted that a supplemental New Drug Application (sNDA) for Zynrelef to support an expanded use in soft tissue and orthopedic surgical procedures remains on track with an FDA decision expected by October 23.
However, in its Q4 2023 results release in March, former CEO Barry Quart had said that customers had indicated that they would use Zynrelef if it was easier to remove from the vial. The company is developing a vial access needle (VAN) which reduces the withdrawal time from minutes to about 30 seconds.
On Thursday, new CEO Craig Collard shed some light on the timeline for the VAN during the Q1 earnings call.
Collard said "So if it does work out that way, we would have the VAN coming in about 1.5 years or so and then, call it, 1.5 years after that you've had the prefilled syringe. And I think in the midst of all that as well, you've also got the expansion of the label possibly with the sNDA filing."
Speaking on the sNDA, Collard noted that the company cannot predict what indications it will get and how broad the label will ultimately receive approval for.
Heron noted in its Q1 release that is also focusing on reducing cash burn through improved operational efficiency.
"We're certainly not doing anything on the oncology side. I think on the acute side, we're just trying to really assess are we aligned in the proper accounts and what does that look like," Collard commented.
For further details see:
Heron stock slumps ~35% amid quarterly misses on both lines