"We increase our price target based on a risk-adjusted, discounted cash flow analysis driven by a higher valuation for the pain program HTX-011," JMP Securities analysts said.
The upcoming, placebo-controlled Phase 2 bunionectomy study will show improved pain control with HTX-011 over two to three days, compared to PCRX's Exparel Phase 3 data, according to the analyst note.
The company believes that 5% penetration into eligible surgical procedures is reasonable, and assuming 40 million procedures at today's Exparel price implies $500 million in U.S. sales, JMP Securities added.
Heron Therapeutics is a biotechnology company that uses its technology to develop products to address unmet medical needs and to improve the therapeutic profile of injectable pharmaceuticals.
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