Healthcare company Heron Therapeutics (NASDAQ:HRTX) lost ground in Friday’s trading, and it’s all thanks to one thing: troubles with Zynrelef. While Heron posted a winner of an earnings report just yesterday, that win didn’t last long as the troubles with one of its biggest drugs kicked in. In fact, the setbacks at Heron were enough to cost it 7.75% of its stock value.
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EPS came in at -$0.17 per share, beating analysts’ projections of -$0.32 per share. Revenue was $30.03 million, up 45.4% year-over-year, which also beat the $27.24 million that analysts were looking for. Furthermore, Zynrelef, which started all the troubles seen today, brought in $3.9 million all by itself. Last year at the same time, it brought in merely $800,000.
That’s when CEO and chairman Barry Quart stomped on the party. Quart noted that the first quarter was starting out slowly, which wasn’t out of line. The overall number of surgeries tends to drop in the first quarter. But Quart doesn’t expect a rapid comeback in the spring; there will be growth, but it’ll slow down. While Heron looks to expand use cases for Zynrelef, it’s going to take time to get such a thing put together and released. Therefore, this will weigh on future results.
That weight—or that wait—isn’t bothering hedge funds, as confidence is currently Very Positive. What’s more, hedge funds added 7.2 million new shares in the last quarter. That’s almost five times the amount held in September 2022.
