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Hawk’s Nest

Heron Therapeutics (HRTX) Call Buying into PDUFA

by | Apr 29, 2021

Heron Therapeutics (HRTX) large trade on 4/28 bought 4600 May $18 calls to open for $2.80 with earnings expected in early May, a name that has over 3,350 May $15 calls in open interest with many spread versus the $26 calls from a trade on 3/24 and also has 1700 June $22 calls. HRTX shares have been putting in higher lows on the weekly and sit above the VWAP from March 2020 lows while just under key resistance near $19.35, a move above can free up a strong rally with $22 next resistance. Heron is a commercial-stage biotechnology company focused on improving the lives of patients by developing best-in-class treatments to address some of the most important unmet patient needs. HRTX is developing novel, patient-focused solutions that apply its innovative science and technologies to already-approved pharmacological agents for patients suffering from pain or cancer. HRTX has a May 12th, 2021 PDUFA upcoming for its NDA for HTX-011 is postoperative pain management. HRTX has a market cap of $1.7B and is expecting $130-$145M in sales for the CINV franchise in 2021 and ended 2020 with $208.5M cash. HRTX forecasts see revenues rising 75% in 2021, 71% in 2022 and 63% in 2023. Analysts have an average target of $30 with short interest high at 26.6% of the float. HRTX has not seen any recent analyst coverage. Baker Brothers have a $126M position.