What happened
Shares of Heron Therapeutics (HRTX -5.36%) were up more than 19% early Thursday afternoon. The biopharmaceutical company, which has been focusing on post-surgery therapeutics, has been on a steady rise since the company announced on Monday that it was appointing Craig Collard as its new CEO.
So what
Much of the bounce back is due to how low the stock fell last week, including hitting its 52-week low of $1.48 on March 31. Investors were encouraged by the shakeup that led to a new CEO, but the company only reported $84.9 million in cash at the end of 2022, so that's an ongoing concern. Heron has been growing revenue and shrinking net losses, however. In its fourth-quarter and year-end report, it said it had fourth-quarter revenue of $30 million, up 44.9% year over year, and yearly revenue of $107.7 million, up 24.7%.
The healthcare company reported a net loss of $19.9 million for the quarter, a loss of $0.17 in earnings per share (EPS), compared to a loss of $54.6 million and an EPS loss of $0.54 in the same period a year ago. For the year, the company said it had a net loss of $182 million, or a yearly EPS loss of $1.67. That's an improvement from the $220.7 million and EPS of $2.24 lost in 2021.
The key for Heron is how well lead therapy Zynrelef does. Launched in May 2021, Zynrelef is used to treat pain up to 72 hours after surgery. As the drug adds indications, its sales are growing. In the last quarter, it brought in $3.9 million, up 44% sequentially and 362%, year over year.
Now what
Investors will want to see what kind of plan Collard has going forward to improve the company's cash position. The company may consider the share's rise an opportunity to sell stock.
