Heron Therapeutics Inc (NASDAQ:HRTX) has found Phase 2 success with its lead product candidates for the prevention of post-operative pain, HTX-011 and HTX-011B. In reaction, Cantor analyst Chiara Russo reiterates a Buy rating on the stock, with a price target of $41.00, marking a nearly 143% increase from where the shares last closed.
Russo finds Phase 2’s Proof-of-Concept study results for both drugs HTX-011A and HTX-011B encouraging. However, the analyst acknowledges that this specific Phase 2 trial was small, with a range of about 25 to a maximum of 50 patients, putting a slight “air of caution over the results.” Russo finds the results are mixed, with highly statistical significant results for secondary endpoints SPI (0-48) and (0-72), but none at SPI (48-72).
As Heron progresses with its pipeline drugs, a Phase 3 is well on its way; and this time, it will be a large study. Russo believes, “The duration and strength of effect will ultimately differentiate the product in the market, in our view, as physicians look for effective, long-lasting, opioid-sparing options for postsurgical patients.” For now, Russo looks forward with hope that the Phase 3 study with a larger group of patients will be able to “push those longer duration endpoints into the positive.”
As usual, we suggest you take any analyst’s notes with a grain of salt. They often successfully move stock prices, but it is always wise to take everything in context. According to TipRanks, Chiara Russo is ranked #3,677 out of 4,083 analysts. Russo to date has reached a success rate of 48%, and on average, this analyst loses 5.2% in her annual returns.
TipRanks analytics exhibit HRTX stock is a Strong Buy. 5 analysts polled in the last 3 months all rate a Buy for Heron Therapeutics shares. The 12-month average price target stands at $46.80, marking an almost $177% upside from where the stock is currently trading.