Cowen & Co. Initiates Outperform on Heron Therapeutics; Sees 33% Upside For The Stock

Cowen & Co. analyst Boris Peaker initiated coverage on shares of Heron Therapeutics Inc (NASDAQ:HRTX) with an Outperform rating and a price target of $40, which implies an upside of 33% from current levels.

Peaker commented, “Heron has already advanced two potentially best-in-class therapies into clinical studies, Sustol and HTX—011, both of which are reformulations of existing drugs that have succeeded in the market. In both cases, the existing therapies did not have optimal release profiles and Heron’s reformulations have shown best-in-class efficacy in clinical and preclinical studies. We believe this platform is capable of producing future candidates with reduced risk and high commercial potential.”

Moreover, “Unique to US Medicare Part B reimbursement, private oncology clinics have a financial incentive to use a more expensive branded drug (as long as approved and reimbursed) over similar less expensive generics. We believe that Sustol’s label which shows head to head efficacy against approved drugs will justify its branded pricing in a market with similar generics, and the financial incentives to private clinics will drive adoption. However, we expect no significant uptake in hospitals or Ex-US for this drug.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Boris Peaker has a total average return of 35.2% and a 58.7% success rate. Peaker is ranked #42 out of 3679 analysts.

With a return potential of 32.4%, the stock’s consensus target price stands at $40.

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