Heron Shares Jump After Equity Financing, Q2 Earnings
Heron Therapeutics Inc (NASDAQ: HRTX) reported Q2 sales of $27.63 million, +23.1% Y/Y, beating the consensus of $24.31 million.
Oncology sales reached $25.1 million, up from $22.4 million a year ago.
The company reported an EPS loss of $(0.55), narrower from $(0.62) a year ago but missing the consensus of $(0.50).
In June 2022, Heron announced a corporate restructuring and cost reduction plan. It expects to achieve over $50 million in reductions in annual operating expenses in 2023.
The company announced a private placement of 16.13 million at $3.10 per share and pre-funded warrants to purchase up to 8.5 million shares at $3.0999 per pre-funded warrant.
Gross proceeds of the private placement are expected to be approximately $76.5 million.
With the proceeds from the recent private placement, pro-forma cash at the end of the second quarter was $158.7 million, which is projected to provide a cash runway through 2024.
Guidance: Heron currently expects FY22 oncology sales of $93-$95 million, up from prior guidance of $89-$93 million.
Price Action: HRTX shares are up 16.2% at $4.15 during the market session on the last check Tuesday.
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