Business
Heron Therapeutics Announces Second Quarter 2023 Financial Results and Provides Corporate Updates
Company is well capitalized after signing $50 million working capital credit facility and recent $30 million equity raiseFavorable outcome at Markman hearing
About this update from Heron Therapeutics, Inc.
[{"type":"text","content":"Company is well capitalized after signing $50 million working capital credit facility and recent $30 million equity raiseFavorable outcome at Markman hearing in pending CINVANTI® ANDA patent litigationNew management team in placeReiterating full-year net product sales guidance for the oncology care franchise of $99-$103 millionSAN DIEGO, Aug. 14, 2023 /PRNewswire/ -- Heron Therapeutics, Inc. (Nasdaq: HRTX) (\"Heron\" or the \"Company\"), a commercial-stage biotechnology company focused on improving the lives of patients by developing and commercializing therapeutic innovations that improve medical care, today announced financial results for the three and six months ended June 30, 2023 and highlighted recent corporate updates.\n\"During the second quarter of 2023, the new executive management team has been focused on resizing the business and recently announced a cost reduction program that is anticipated to save the Company approximately $75 million in cash spend through 2025,\" said Craig Collard, Chief Executive Officer of Heron. \"We are in the early stages of revamping Heron into a commercially focused company with efficient operations. As we move through the remainder of 2023, our team is focused on commercial execution and we look forward to updating you on those efforts in the near-term. In addition to the cost-cutting, we were able to bolster the balance sheet by completing a $30 million equity financing with some of our largest shareholders, as well as closing on a $50 million working capital facility. Based on our current operational plan, we expect that this will provide the Company with enough capital to achieve profitability.\"\nRecent Corporate Updates\nFinancings:In July 2023, Heron completed a private placement equity financing with estimated net proceeds from the sale of Company common stock and pre-funded warrants of $29.7 million.In August 2023, Heron entered into a working capital facility, providing for an aggregate gross principal amount of up to $50.0 million in working capital for the Company, subject to certain terms and conditions, with approximately $24.5 million in net proceeds drawn at closing.Acute Care Franchise\nAcute Care Franchise Net Product Sales: For the three and six months ended June 30, 2023, acute care franchise net product sales were $4.5 million and $8.3 million, respectively, which inc...