Heron Therapeutics to cut about one-third of its workforce as part of cost-cutting plan

Heron Therapeutics Inc. said Thursday it will lay off about one-third of its workforce as part of a restructuring expected to save $43 million a year. The biotechnology company’s stock was still inactive in premarket trading. The company said it’s enacting the restructuring and cost cutting measures to address “the current market realities and macro headwinds facing many commercial-stage biotechnology companies,” and to help support its acute care and oncology care franchises. The company said the cost cutting actions will mostly result from the reduction of 34% of its workforce, which would represent about 103 employees, based on 302 full-time employees the company had as of Dec. 31. Heron said about 70% of the jobs being cut are coming from research and development. The stock has plunged 65.3% year to date, while the iShares Biotechnology ETF has dropped 22.7% and the S&P 500 has shed 19.9%.

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