What's Happening With Heron Therapeutics Shares Today?

Heron Therapeutics Inc HRTX announced a cost reduction plan and a corporate restructuring following a strategic review of the business conducted by the new management team. 

These actions are expected to result in approximately $75 million in cash savings through 2025, including $45 million in operational savings.

The Company's cost reduction plan will focus on streamlining operational expenditures, including reductions in research and development and general and administrative expenses, while aiming to achieve profitability in late 2024. 

A portion of the expected cash savings will come from reduced external spending, including completed renegotiation and right-sizing of key vendor contracts, which is expected to result in over $31 million in cash savings through 2025. 

In addition, Heron has conducted a corporate restructuring, reducing the Company's employee base by 25%. Due to this restructuring, Heron expects to incur non-recurring cash expenses of approximately $5.9 million in 2023.

Heron Therapeutics announced a private placement of 20.7 million shares at $1.37 per share and pre-funded warrants to purchase up to 1,162,891 shares at $1.3699 per pre-funded warrant, with gross proceeds of approximately $30.0 million.

Heron will use the proceeds for working capital and general corporate purposes.

Price Action: HRTX shares are up 9.43% at $1.51 on the last check Monday.