Heron Therapeutics Inc. priced its public offering of 8,571,429 common shares at $17.50 each.
The San Diego-based drugmaker expects gross proceeds of about $150 million.
Underwriters have a 30-day option to buy up to an additional 1,285,714 common shares at the same price.
Net proceeds will be used to launch its non-opioid pain drug HTX-011, provided it is approved by the U.S. Food and Drug Administration.
The company refiled its application for HTX-011 with the U.S. FDA on Oct. 1 after an initial rejection in April. The drug is also under review by the European Medicines Agency.
Previous studies have shown HTX-011 helped patients avoid opioids and with postoperative pain management after undergoing hernia and foot surgeries.
Part of the proceeds will also be used for the marketing of its antiemetic drugs Sustol and Cinvanti, as well as clinical trials for HTX-011. Some of the proceeds will also go to product development and general corporate purposes.
The offering is expected to close Oct. 8.
Jefferies, Cowen and Evercore ISI are acting as joint book-running managers for the offering, while Cantor is acting as lead manager. JMP Securities, Needham & Co. and Northland Capital Markets are acting as co-managers for the offer.
