Heron Therapeutics, Inc. (NASDAQ: HRTX)
Heron Therapeutics, Inc. (HRTX), a biotechnology company on Friday announced that the FDA has not yet completed its review on its new drug application Sustol. Sustol is an injectable drug used to treat chemotherapy induced nausea. The FDA announced that they will probably make their decision in late February. HRTX stock is down over 23% as of late afternoon on Tuesday as investors are speculating that the delayed FDA decision could ultimately lead to the FDA rejecting the drug.
HRTX Technical Analysis
HRTX opened down in price yesterday to $22.41, down from the prior day’s close of $22.71, which is a 1% decrease in price. HRTX as of late afternoon trading is down over 23%, trading at $17.50, with lows reaching $16.76. Taking a look at the daily chart we can see that HRTX has been on an overall decline dating back to December 29th when it was trading at $29.34, or equivalent to a 40% drop in price. We have to go all the way back to May 28th when it traded at $12.35 to find the last time the stock traded below this level. HRTX has a float of 35.46 million shares and is trading over 2 times the normal daily trading volume. Biotechnology stock can be very sensitive to any news regarding their drug trials and this stock is no different as it is extremely volatile right now. HRTX also has shown its volatility in the past, back on September 23rd the stock was trading at $40.81 only to drop all the way to $21.16 four trading days later, or equivalent to a 48% drop in price. At these levels the stock may be a bit oversold and I would expect a possible late rally into closing.
Heron Therapeutics Profile
Heron Therapeutics, Inc., incorporated on February 5, 1987, is a biotechnology company. The Company uses its technology to develop products to address unmet medical needs. Its Biochronomer polymer-based drug delivery platform is designed to improve the therapeutic profile of injectable pharmaceuticals. The Company’s product candidate, SUSTOL (granisetron injection, extended release), is being developed for the prevention of both acute- and delayed-onset chemotherapy-induced nausea and vomiting (CINV). The Company’s product development program also focuses on identifying new delivery methods and formulations utilizing known compounds that may expand or extend the therapeutic effort, or eliminate the drawbacks of current therapies. The Company’s other product candidates include HTX-019 for CINV, HTX-011 for Post-operative pain management, and HTX-003 for chronic pain management.
Sustol (APF530) is being developed for the prevention of acute-onset chemotherapy-induced nausea and vomiting (CINV) for patients undergoing both moderately emetogenic chemotherapy (MEC) and highly emetogenic chemotherapy (HEC), and for the prevention of delayed CINV for patients undergoing MEC. Sustol is in Phase III Clinical trials.
HTX-019 (NK1 CINV Therapy)
HTX-019 is an injectable formulation of aprepitant, an NK1 receptor antagonist used in combination with 5-HT3 receptor antagonists for the prevention of CINV. HTX-019 is in Preclinical state.
HTX-011 (Post-Surgical Pain Management)
HTX-011 is a combination of the local anesthetic bupivacaine and the anti-inflammatory meloxicam formulated utilizing the Company’s Biochronomer technology to release drug for up to 72 hours. HTX-011 is in Phase I trials.
HTX-003 (Chronic Pain and Addiction)
HTX-003 is a formulation of buprenorphine for the treatment of chronic pain and opioid addiction. HTX-003 is in Preclinical state.
The Company competes with ProStrakan, Eisai and Pacira Pharmaceuticals, Inc. Reuters