Business
Heron Therapeutics Announces Cost Reduction Plan and Restructuring
- Expected overall cash savings of $75 million through 2025- New executive management team in place SAN DIEGO, July 24, 2023 /PRNewswire/ -- Heron
About this update from Heron Therapeutics, Inc.
[{"type":"text","content":"- Expected overall cash savings of $75 million through 2025- New executive management team in place\nSAN DIEGO, July 24, 2023 /PRNewswire/ -- Heron Therapeutics, Inc. (Nasdaq: HRTX), a commercial-stage biotechnology company focused on improving the lives of patients by developing and commercializing therapeutic innovations that improve medical care, today 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 cash savings of approximately $75 million through 2025, inclusive of $45 million in operational savings, and continue Heron's progression towards a streamlined organization focused on commercial execution, enabling it to take a crucial step towards achieving profitability.\n\"The cost reduction plan and restructuring are the result of a recent internal review of Heron's operations, business practices and strategies by our new management team. With the new management team in place our goal is to develop a long-term plan that maximizes the potential of Heron, and we believe we have taken the first initial step in achieving that goal with the plan we announced today,\" said Craig Collard, Chief Executive Officer of Heron. \"While making some of these decisions was difficult, I believe they are necessary to better position Heron for a sustainable future. Going forward, we are focused on enhancing the value of our products while running an efficient business that delivers value to our shareholders.\" \n\"In conjunction with our concurrent $30 million equity financing, these operational changes represent a critical realignment of the Company's resources to enable Heron to maximize our commercial capabilities and unlock the significant value of our assets,\" added Adam Morgan, Chairman of Heron's Board of Directors. \"Based on our current operational plan, we believe this financing will be the last equity raise needed prior to achieving cash flow positivity.\"\nThe 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 spend, including completed renegotiation and ri...