Heron Therapeutics is looking to raise money to fund a potential launch of its anesthetic for bunionectomy and hernia repair by selling six million shares of its common stock.
Heron Therapeutics is looking to raise money to fund a potential launch of its anesthetic for bunionectomy and hernia repair by selling six million shares of its common stock at $26 per share in an underwritten registered public offering.
The announcement though drove down shares of Heron Therapeutics this morning. Shares of Heron dropped from Wednesday’s close of $27.80 to $26.80 this morning. Shares are trading at $27.25 as of 10:13 a.m.
Heron is looking to use the proceeds of the sale to fund the commercial launch of HTX-011 if it is approved by the U.S. Food and Drug Administration. Additionally, the company said it will also use the funds to support the ongoing commercialization of approved products Sustol and Cinvanti, as well continued clinical trials. Cinvanti, an anti-nausea treatment for cancer patients, was approved by the FDA in November and Heron is expected to roll out the drug this year. Sustol was approved in 2016 as an anti-nausea treatment for chemotherapy patients.
Ten days ago Heron released Phase III data for HTX-011 that showed the therapy hit all primary and key secondary endpoints in two Phase III trials that cut down on the requirement of opioid drugs to treat pain. That positive announcement, of course, comes at a time when the nation is gripped with concerns over opioid abuse. Company leaders believe HTX-011 could have a significant impact on the opioid crisis by reducing the use of opioids after surgery.
Data from the Phase III trials show HTX-011 demonstrated statistically significant reductions in both pain intensity and the use of opioid rescue medications through 72 hours following surgery in patients who have undergone bunionectomy and hernia repair. HTX-011 is the “first and only” long-acting local anesthetic to demonstrate significantly reduced pain and opioid use through 72 hours in a Phase III study compared to current post-operative standard of care, bupivacaine solution. HTX-011 is administered as a single-dose application via needle-free syringe to directly coat the affected tissue within the surgical site prior to suturing, the company said 10 days ago.
Jefferies, Cowen and Evercore ISI are acting as joint book-running managers for the new offering. In addition to the six million shares, Heron said it has granted the underwriters a 30-day option to purchase up to an additional 900,000 shares of common stock on the same terms and conditions. The offering is expected to close on or about April 3.
