SAN DIEGO - Heron Therapeutics, Inc. (NASDAQ:HRTX), a commercial-stage biotechnology company, has announced the appointment of Brett Fleshman as its new Chief Business Officer. With 25 years of experience in the pharmaceutical and biotechnology sectors, Fleshman is expected to play a critical role in Heron's next growth phase, focusing on inorganic revenue growth and investor relations.
Fleshman's career includes significant roles in corporate and business development, commercial strategy, and marketing. He comes to Heron from NovaQuest Capital Management, where he was a Managing Director responsible for deal sourcing and investment management. His past achievements include a pivotal role in Veloxis Pharmaceuticals' turnaround strategy, leading to its acquisition by Asahi Kasei in 2020.
Heron's CEO, Craig Collard, expressed confidence in Fleshman's ability to replicate past successes and drive growth within the company, particularly through mergers and acquisitions (M&A) and by leveraging the established commercial team.
Fleshman's appointment is part of Heron's strategy to expand its commercial reach in both hospital and community settings and to attract a broader range of investors. His background includes senior positions at Cornerstone Therapeutics and marketing roles at Ther-Rx Corporation and Genzyme Biosurgery, now part of Sanofi (EPA:SASY) (NASDAQ:SNY) Genzyme.
In a statement, Fleshman emphasized the potential to deliver strong commercial results through M&A, drawing on his extensive experience and network in financing late-stage and commercial pharmaceutical companies.
Heron Therapeutics focuses on developing treatments for acute care and oncology patients, aiming to improve medical care through innovative drug discovery and patented technologies.
This announcement is based on a press release statement from Heron Therapeutics, and it contains forward-looking statements subject to risks and uncertainties. Heron has stated that it does not undertake any obligation to update or revise these statements unless required by law.
In other recent news, Heron Therapeutics reported a noteworthy 15% increase in revenues in its Q2 2024 earnings call. The company's oncology products, CINVANTI and SUSTOL, played a significant role in this revenue growth. In addition to revenue growth, Heron Therapeutics managed to improve gross margins from 40% to 73% and cut operating expenses by over $36 million compared to the same period last year.
Furthermore, the company is preparing for the launch of the Vial Access Needle (VAN), which is expected to contribute to future revenues. Heron Therapeutics also noted that it is planning to pursue more mergers and acquisitions, indicating a strategic focus on growth.
On the legal front, a decision on the ongoing CINVANTI patent infringement lawsuit is anticipated in Q4 of 2024. Looking ahead, Heron Therapeutics expects a significant boost in ZYNRELEF revenues due to the VAN launch and a partnership with CrossLink, with the majority of revenue inflection projected for Q1 of 2025. These are some of the recent developments at Heron Therapeutics.
InvestingPro Insights
As Heron Therapeutics (NASDAQ:HRTX) welcomes Brett Fleshman as its new Chief Business Officer, the company's financial health and stock performance are of particular interest to investors. According to InvestingPro, Heron's market cap stands at $292.72 million, reflecting the company's position in the biotechnology market. The stock price has experienced significant volatility, which could be a point of consideration for investors eyeing the company's growth trajectory under Fleshman's strategic direction.
InvestingPro data highlights a notable revenue growth of 15.6% over the last twelve months as of Q2 2024, suggesting that Heron is expanding its commercial footprint despite facing profitability challenges. Analysts, as noted in an InvestingPro Tip, do not expect the company to be profitable this year, which aligns with the reported operating income margin of -21.11% for the same period. This insight could be particularly relevant as Fleshman aims to drive growth through mergers and acquisitions, potentially leveraging Heron's liquid assets that exceed its short-term obligations—a positive sign for its financial agility.
Investors may also take interest in the company's stock performance over the last three months, which has seen a significant decline. This aligns with another InvestingPro Tip, which points out the stock's poor performance over the last month. With the stock price currently at $1.93 and the InvestingPro Fair Value estimated at $1.94, investors may find an opportunity to engage with Heron's stock at a price close to its fair value assessment.
For those seeking more in-depth analysis, InvestingPro offers additional insights and tips on Heron Therapeutics, accessible at https://www.investing.com/pro/HRTX, which could further inform investment decisions in the context of the company's strategic initiatives and market performance.
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