Heron Therapeutics to cut 34% of workforce as part of restructuring
By Michel Dabaie
Commercial-stage biotech company Heron Therapeutics Inc. has unveiled a corporate restructuring, including a 34% reduction in its workforce.
The company said Thursday that the restructuring and cost-cutting plan was intended to “respond to current market dynamics and prepare the company for long-term sustainability.” Heron said he expects annualized cost savings of $43 million.
“To address the current market realities and macro headwinds faced by many commercial-stage biotech companies, we are enacting critical plans to protect Heron’s long-term sustainability and growth plans. This restructuring and cost reduction plan should support our operations, with business development activities intended to provide the resources needed to further expand the runway,” said Chairman and CEO Barry Quart.
Most of the cost savings will come from significant headcount reductions across the company’s research and development organization, with approximately 70% of total employee reductions coming from research and development, a said Heron.
The remaining research and development team will support the label expansion for ZYNRELEF and the new drug application HTX-019 for postoperative nausea and vomiting, the company said.
Write to Michael Dabaie at [email protected]